Non-profits should be keenly aware of the importance of updating their donors about the changing tax law and how it impacts charitable gifts. Every non-profit or church needs to send a letter like this to their donors or church members every year. This letter was written by my friend Ben Powell at World Christian Broadcasting.
Two Strategies for Year End Giving
Some nonprofit organizations receive 50% or more of their annual income in the last month of the year. This is primarily because many people only think of donating to a favorite cause before the end of a year for income tax purposes. To be specific, many people’s level of giving is dependent on their income for the year.
Regardless of your personal planning circumstances, World Christian Broadcasting is just thankful you choose to include us in your charitable priorities. We are so grateful you have decided that this ministry is important and one that deserves your support. Without you and others with similar values, we would not be able to make the good news of Christ available to millions of people. Thank you for your support!
The new tax law will affect everyone’s tax situation. You may need to visit with your tax advisor to determine the best strategy for your personal circumstances. In general, you will probably find it advantageous to find ways to make contributions that could preclude you from receiving additional income. It is predicted only about 15% will itemize deductions this year - about half as many as before. This is because they will find it better to take the standard deduction.
For example, giving stock instead of cash could benefit you, especially if you were going to liquidate stock to provide cash for your charitable giving. This strategy would eliminate potential gain from the sale of securities, and could therefore lower your tax bill for the year.
Retirees aged 70½ or older will especially want to consider the advantage of giving directly from their IRA. Instead of making donations with the proceeds you would receive from your IRA, using the IRA transfer provision will reduce your income for the year. Under this provision, even distributions required with the Required Minimum Distributions can be used for this purpose. Again, this strategy would reduce the retiree’s income for the year and thus their taxes.
Thank you, again, for your support of World Christian Broadcasting. 2018 has been a good year for this ministry. We anticipate continued growth in language services in the years to come. We are so glad you have partnered with us in this exciting mission. If you would like clarification about the strategies discussed, please contact us today.