As you consider your year-end giving, we hope you will consider making good use of the income tax charitable deduction. Your year-end gift can significantly reduce your income taxes while providing meaningful support for New Life. No matter what your income, if you itemize, you can almost always lower your income taxes through charitable giving. The amount of the income tax savings will depend on your tax bracket and the size of your gift.
Consider these ways of giving:
The Simplest Gift
Sending a check to New Life is the simplest way to give, and if you itemize your tax return, you can lower your income tax simply by writing a check payable to New Life Ministries by December 31. There is no easier way to create a year-end charitable deduction! It’s very important that if you wait until late December to send your gift, to be sure your envelope is postmarked on or before December 31; if it is, your donation will qualify for a deduction this year even if we don’t receive it until the first week or so of next year.
If you own stock, you might consider the benefits of contributing appreciated stock over giving cash. There is a double benefit to giving stock that you’ve held for more than a year. First, you avoid paying any capital gains tax on the gain in value of the stock since you’ve owned it. In addition, you receive a charitable deduction for the full fair-market value of the stock at the time of the gift. We’ll send you a receipt for the number of shares of stock you donated and the date we received it. You’ll file the value of the stock at the time you donated it as part of your itemized tax return
Example: If you purchased stock more than a year ago for $2,000, and it is now worth $10,000, an outright gift of the stock to us would result in a charitable contribution deduction of $10,000. In addition, there is no capital gains tax on the $8,000 of appreciation.
Call (949) 494-8383, ext. 745 and ask for Larry Sonnenburg if you’re interested in making a gift of stock. With a few pieces of information, it’s quite simple.
Gifts of Real Estate
A residence, vacation home, farm, acreage, or vacant lot may have so appreciated in value through the years that its sale would mean a sizeable capital gains tax. By making a year-end gift of this property, you would avoid the capital gains tax, and, at the same time, receive a charitable deduction for the full fair-market value of the property.
Gifts of Personal Property
New Life has received several different types of personal property as gifts. We’ve received jewelry, wedding rings (of deceased or divorced spouses), artwork, automobiles, and currently, we’re being offered a boat. When you make such a gift, we will send you a receipt that documents what the gift is. It’s up to you to place a value on the gift at the time you made the donation for your tax return. After receiving and receipting the personal property, New Life will sell it and use the cash received upon the sale to continue in ministry. We cannot claim a value for you or guarantee an amount it will be sold for. But the receipt of the item received and sale will be documented in New Life’s records.
Gifts at End of Life
While year-end is a natural time to think of tax savings, at the same time you might want to consider remembering New Life in your estate plan. Federal estate taxes have a fairly high exemption, so many of us don’t worry about that, but if you do, this is a good time to think about including a charitable bequest in your will to benefit New Life, and if you have a large estate, to help save in taxes.
We recommend you make your estate plans consulting an estate attorney, CPA or other tax/legal professional.
Giving to New Life directly from your IRA
If you’re at least 70½, you may now give a qualified charity (New Life is a qualified charity) up to $100,000 directly from your IRA without triggering federal income taxes. The gift will also satisfy the rules for required minimum distributions for the year. There are very specific requirements in doing so that are not difficult—they are in fact pretty simple—but they are specific. If you take a distribution payable to yourself and then give that amount to a charity, the amount will be a tax deduction but the distribution will be added to your adjusted gross income.
Please consult with a tax professional before making such a distribution!
For Further Information
Please contact Larry Sonnenburg, President of New Life, at (949) 494-8383 ext. 745 with any questions or information on a donation you wish to make. Please recognize that the information above is general in nature and we encourage and advise you to seek tax counsel from a professional.