TMF continues to monitor the impact of inflation and navigate fluctuations in the investment markets. We are grateful for the steadfast and generous support of our donors as we adapt and continue to invest in communities and their leaders across Texas and New Mexico.
Charitable giving differs from your financial plans in important ways. A well-planned charitable contribution is a tangible way to make a positive difference at the churches and nonprofits with whom you partner in ministry.
Concern about your financial security, in changing markets, may make you reluctant to think about a charitable contribution now, but there are charitable gift plans that can allow you to continue to be generous and preserve flexibility if your circumstances change.
Current Gifts can make a Positive Difference Now
You can have the most immediate impact with a gift made in 2022. Your tax savings could double if you contribute appreciated securities like stocks or mutual funds that are now worth more than you paid for them, even if they’ve recently lost value. Giving appreciated securities avoids the capital gains tax that you would owe if you sold them, and you can take an income tax deduction for the current value of your investment.
If you are 70½ or older you can avoid taxes with a tax-free Qualified Charitable Distribution (QCD) from your IRA account. In addition, a QCD contribution will count toward your Required Minimum Distributions without increasing your income taxes.
Preserving Financial Flexibility with a Legacy Gift
A gift from your estate can provide future support while preserving flexibility if your priorities change in the future. Most estate gift plans allow you to change your gift if need be. You can also direct that your gift be made only if the needs of your heirs have been met first.
You can contribute from your bank and other financial accounts with a beneficiary designation. This gift is simple — just ask your financial institution to specify your church, the charity of your choice, or TMF, to receive some or all of your account after you are gone.
A legacy gift from your retirement account is a very tax efficient way of giving because it avoids the income tax that your estate or the heirs would have paid on funds remaining in your retirement account.
Gifts that Provide lifetime Income
A life income gift, also referred to as a split-interest gift, can provide lifetime payments to you or others in exchange for your contribution. The amount of income can be fixed or variable and can last for one or more lifetimes. You will receive an income tax deduction for the value of the contribution and avoid capital gains tax if you contribute appreciated property. Your tax deduction on life income gifts is determined by the charitable discount rate, which is tied to interest rates. As interest rates increase or decrease so too will your charitable deduction. Finally, depending on both your charitable and financial goals, some gifts to consider include charitable gift annuities, charitable remainder unitrusts and charitable remainder annuity trusts