12 Things to do in 2013-Properly Report Your Charitable Gifts

12 Things to do in 2013-Laurie Valentine #12

The federal government encourages charitable giving by allowing you to deduct gifts made to your church and other qualified charities on your income tax return if you itemize. However, you must follow the IRS’s reporting rules to assure your charitable deduction.

If you make gifts of stock, bonds, mutual fund shares, life insurance or real estate with a value of more than $500, you must file Form 8283 (Noncash Charitable Contributions).

If the value of your noncash gift is more than $5,000, you must have what you give appraised. The appraisal cannot be dated more than 60 days prior to the date you complete your gift and must be prepared by a “qualified” appraiser (someone who holds themselves out to the public as an appraiser and who has state credentials showing he or she is qualified to do the appraisal). The appraiser may not be related to you, work for you or the charity on a regular basis, or be a party to the transaction by which you acquired the property. The appraiser’s fee cannot be based on a percentage of the property’s value.

You do not have to have an appraisal for gifts of publicly-traded stocks, bonds or mutual fund shares, even if their total value exceeds $5,000.

To deduct any single gift (cash or noncash) of $250 or more, you must have a written receipt from the charity describing (but not valuing) the gift by the time you file your return. If the charity gave you any thing or service in exchange for your gift, the receipt must describe them and give you a good faith estimate of their value. If no goods or services were provided, the receipt must say that. If the only thing you received for your gift of $250 or more was an “intangible religious benefit” the receipt must say that.

Following the rules is key to assuring the deductibility of your charitable gifts!

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

12 Things to do in 2013-Window of Opportunity Closing!

12 Things to do in 2013-Laurie Valentine #11 

The federal tax bill enacted near the end of 2012 extended the Charitable IRA Rollover provisions through December 31, 2013. There is a good chance this “window of charitable giving opportunity” may close and not be extended after that deadline.

The Charitable IRA Rollover provisions permit a person who is 70 ½ or older to make tax-free outright gifts in any amount up to a total of $100,000 from a traditional or Roth IRA directly to qualified charities. Your church and our KBC and SBC agencies and institutions are “qualified charities”. Private foundations and donor advised funds are not.

You are not entitled to a charitable income tax deduction for your IRA Charitable Rollover distributions. They do, however, count as required minimum distributions.

Act now to avoid missing this valuable opportunity to provide current support to charitable causes important to you.

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

12 Things to do in 2013- Year End Giving

12 Things to do in 2013-Barry Allen #11

As we approach the end of the year, here are some reminders about charitable giving to your church, another Baptist ministry or to the KBF for the benefit of your church and/or favorite Baptist ministry(s): (1) to claim a deduction you must itemize on Form 1040, Schedule A of your federal tax return; (2) only donations to qualified charitable organizations are deductible; (3) for 2013, an IRA owner age 70 1/2 or older can make a direct transfer of up to $100,000 to an eligible charity, tax free, as a part of the required minimum distribution; (4) the deadline for 2013 "deductible" contributions is December 31, 2013; if your gift is by check it must be written and mailed by December 31 even though it will not be cashed by the charity until after December 31; the same is true with a gift by credit card. For gifts of appreciated assets, and any other assistance you may need, please call Laurie Valentine toll free at 1.866.489.3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

12 Things To Do In 2013- A Child Called Charity

12 Things To Do In 2013 #8- Barry Allen

When you are asked the question "who are your dependents?" you typically think first of your children. But what about your church and other charitable organizations that depend upon your financial support as well? Are they not your dependents, as well? I would answer "yes" they are. 

Therefore, as you prayerfully consider the disposition of the estate the Lord has entrusted to you, include a provision for "your child called charity," which would be your church and the other charitable causes near and dear to your heart. If you have 3 children, instead of dividing your estate among the 3, divide it among the 4, your 3 plus your "child called charity." The portion directed to "your child called charity" should be divided among the charitable interests which have been dependent upon your support during your lifetime. 

Call Laurie Valentine or me toll free for more information about "a child called charity."

(502) 489-3533 or toll free in KY at 1(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

12 Things To Do In 2013- Donor Advised Funds

12 Things to do in 2013- #3- Laurie Valentine

DONOR ADVISED FUNDS:
A TOOL FOR DEVELOPING FAMILY PHILANTHROPY

WHAT IS A DONOR ADVISED FUND (“DAF”)?

A Donor Advised Fund is a fund established with a public charity in which the donor retains for themselves, and possibly others, the right to make recommendations regarding the use of the gifts they make to the fund.  The donor’s retained right is only advisory; the charity is the owner of the DAF and has ultimate control over it.

WHY USE A DAF?

A DAF is a great charitable giving plan for people who want flexibility in timing philanthropic support.  A gift can be made to your DAF at a time when it may be most advantageous for tax-planning purposes without having to immediately decide what charitable causes/projects the gift will support.   It also provides the opportunity to be actively involved in “grant-making” from your DAF on an on-going basis.

WHEN ARE GIFTS TO A DAF DEDUCTIBLE?

Gifts to a DAF are deductible in the year they are made, whether or not there is any charitable distribution out of the DAF during that year.

HOW CAN A DAF HELP US DEVELOP “FAMILY PHILANTHROPY”?

On-going giving to particular charities (philanthropy¹) is the result of the donor’s determination those charities are meeting needs in the community in ways that are making a difference.  Those decisions are impacted and shaped by the giver’s values and beliefs.

A DAF that includes children as donor advisors provides opportunities for sons and daughters to learn first-hand, as the family makes decisions about charitable distribution recommendations together, how their parents approach philanthropy, which organizations they value most and why, and what their parents expect from charitable organizations they support.

Through a DAF children learn by participating---they are not just being handed 2 quarters during the worship service to put in the offering plate; they are part of the process that explores what a $500 distribution from our family’s DAF to this particular organization will accomplish and how such a gift is in keeping with our family’s values and beliefs.

Donor Advised Funds can be a great way to grow giving children as the family gives together.

^{1 ”}Philanthropy”:  The act of donating money, goods, time or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective (Wikipedia)

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

12 Things to do in 2013 - Live beneath Your Means

12 Things to do In 2013 #2
Barry Allen

One of the important stewardship truths of the Bible is we Christians should live beneath (not within) our means, and we should save for a rainy day. The wisdom writer put it this way in Proverbs 21:20: "In the house of the wise are stores of choice food and oil, but the foolish man devours all he has."

Someone has said, "if your out-go exceeds your income then your upkeep will be your downfall." To live beneath your means requires the deferring of pleasure and recognizing the self-imposed bondage you can create by carelessly using easy credit.

Remember these two things: (1) the most nerve wracking place on earth to live is "just beyond your means;" and (2) it wasn't raining when Noah built the ark.

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

12 things to do in 2013- Who Will Be In Charge If…..

12 Things to do in 2013- #2

Laurie Valentine

Who Will Be In Charge If…..

…you had a stroke, began to show advanced signs of Alzheimer’s disease or dementia, or were in an accident that left you mentally incapacitated? If you have not done any prior planning, the answer may be a court-appointed guardian.

Incapacity planning---planning by which you decide who would be in charge in any of those circumstances and execute documents to empower the person(s) of your choice to be able to take charge is an important part of estate planning. Not doing incapacity planning is poor stewardship because guardianship is costly both from a financial and emotional perspective.

Durable powers of attorney, living will directives, health care surrogate designations and revocable living trusts are documents that should be considered when you are putting in place your “incapacity plan”. Using them allows you to empower someone to make decisions for you and manage your finances, as well as expressing wishes regarding decisions you would want made for you if you cannot speak for yourself.

Be a good steward---plan for incapacity now.

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

12 Things to Do in 2012- IRA Rollover

Each Month, the Kentucky Baptist Foundation will share "12 Things to Do in 2013." CEO Barry Allen will share 12  article on faith, philanthropy and stewardship. Trust Counsel Laurie Valentine will focus her 12 on financial, tax and estate planning. 

The IRA Rollover has been extended and expanded!

That’s right ---the recently enacted tax bill extends the IRA Charitable Rollover through 2013.  It also provides a window of opportunity for you to make a gift from your IRA by January 31, 2013 and have it count towards your 2012 charitable contributions.

The Charitable IRA Rollover provisions permit a person who is 70 ½ or older to make tax-free outright gifts in any amount up to a total of $100,000 from a traditional or Roth IRA directly to qualified charities. Your church and our KBC and SBC agencies and institutions are “qualified charities”. Private foundations and donor advised funds are not.

You are not entitled to a charitable income tax deduction for your IRA Charitable Rollover distributions.  They do, however, count as part of your required minimum distribution.

Your IRA Charitable Rollover gifts for 2012 must be completed by Jan. 31, 2013.  You have until December 31, 2013 to make another $100,000 in IRA Rollover gifts for 2013. 

For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.