Five Tips for Year-End Giving

If you’re like most people, you do your major giving toward the end of the year. This probably occurs for several reasons. Thanksgiving, Advent, Christmas, and the coming New Year remind us of our many great blessings in Christ and move us to want to give. The closing of the tax season reminds itemizers to take advantage of income tax deductions. And appeals from various charities remind us of the needs and opportunities that we can help support. Here are five tips to help you make the most of your year-end giving:

1. Calculate your income.

Try to get a handle on your tax liability for the year. Did your unearned income increase? Did you sell any appreciated assets? Will you owe more taxes? This alone may motivate you to increase your giving before December 31. In fact, you may even want to move some of your giving forward from next year to create a larger income tax charitable deduction for yourself this year. Non-itemizers may especially find this “grouping of gifts” useful in order to take advantage of an itemized tax return every other year.

In any case, by the time you fill out your income tax return, it will be too late to make charitable gifts for the previous year. Take the time to do some planning while you still have the opportunity to make a year-end gift.

2. Review your stocks.

Look at the stocks you have held for more than a year. Which ones have appreciated the most? It may be prudent for you to make your year-end gift using one or more of these stocks. Here’s why: If you sold the stock, you would incur capital gains tax on the appreciation. However, if you give the stock and allow the charity to sell it, no one pays tax. And you get a charitable deduction for the full amount of the stock, just as you would if your gift was made with cash. And what’s more, if you can’t use all of the income tax charitable deduction resulting from the gift, you can carry it forward for up to an additional five years. Such gifts are deductible up to 30 percent of your adjusted gross income.

3. Consider a life-income gift.

WELS Foundation offers life-income plans that fit your needs and benefit [Congregation Name] or the WELS charity of your choice. You can make a gift now, obtain tax benefits, and receive income for the rest of your life. Sound too good to be true? A few minutes of your time will convince you otherwise. A WELS Christian giving counselor can provide personalized illustrations and printed material to assist you and your advisor(s).

4. Do your giving early.

This is especially true if you want to make a gift of non-cash assets (stock, real estate, etc.) or a life-income gift. Your professional advisor(s) and WELS Christian giving counselors are busy beyond belief as the year winds down. The sooner you can get your gift activity going, the better it will be for everyone concerned.

5. Talk to your advisor.

Before making any significant gift, you should have your CPA, attorney, or other advisor help you understand the impact of your gift on your income tax return and estate. By doing this you can assure that you giving is prudent, as well as generous and joyful.

For more information about year-end giving opportunities, contact our congregation’s local giving counselor by calling WELS Ministry of Christian Giving at 800-827-5482. He is available to help you at no cost or obligation.

Receiving and Giving

There is a phrase that states, “The mind grows by what it takes in. The heart grows by what it gives out.” Interestingly, stewardship involves both taking in and giving out. We are to receive what God gives us graciously and thankfully. Recognizing that the many God-given gifts we receive can be used to further God’s kingdom, we give generously (2 Corinthians 9:11). Because God gives, we are enabled to give. Thus, the cycle goes: God gives, we receive, we give, and God replenishes. Through our faithful giving, we will hear God’s Words, “Well done, good and faithful servant” (Matthew 25:21).