Investing with Faith / Kimberly Pohovey

Thanks for keeping the love and hope of this holy season alive all year

Most of us wish we had more time to savor the holidays with family and friends. We hope to be busy in all the right ways, but without feeling stressed or overwhelmed. Even more, we want the words of the Christmas carols to ring true for us without having to choose between “Joy to the World” and “All is calm, all is bright.”

The good news is that we can have the holidays both ways—especially if we check off a few of our end-of-the-year boxes before the chaos gets into full swing.

While we may not be able to wrangle everything under our control, there are some things we can manage in advance and with plenty of time to spare.

Year-end giving is a perfect example.

Sooner is always better than later

Planning is the key to finding an effective strategy for coordinating tax benefits with a commitment to charitable giving. That why it’s beneficial to anticipate the end of the year now and begin fine-tuning your adjustments to changing tax laws and shifting economic realities.

Completing a gift by Dec. 31 can reduce taxable income or minimalize tax liability in other significant ways. Remember, however, gifts must be postmarked by Dec. 31, 2023, in order to count for this year. And the Archbishop Edward T. O’Meara Catholic Center in Indianapolis will be closed from Dec. 22, 2023, through Jan. 1, 2024.

Find your best options for giving

Planning a charitable gift is not a one-size-fits-all proposition. Determining the right amount to give is only part of the equation. Finding the right vehicle is equally important, and there are more ways to give than there are lords a-leaping or maids a-milking.

—Cash is the simplest and most popular form of charitable gift.

—Appreciated stock gifts or mutual fund shares can bring even greater tax savings.

—Long-term gifts can often be put into place before the end of the year. Including the mission of the Church here in central and southern Indiana in your will is one way to ensure that everyone will have a share in the hope Christ brings to the world. It is also possible to name the archdiocesan Catholic Community Foundation (CCF) as a beneficiary of a living trust, life insurance policy, or retirement account which may pose tax problems for loved ones.

Additional tips to consider

—Check or credit card: A check mailed to us and postmarked by Dec. 31 can be deducted this year, even if we don’t cash it until early 2024. A gift by credit card is deductible in the year the charge is made.

—Pledges and letters of intent: Pledges to charity are deducted in the year the pledge is satisfied.

—Stock: A gift of stock can be made by electronic transfer. Ownership is then registered to the charity.

—Appreciated property: Deduct the full value of what you give but never pay capital gains.

—Loss property: Consider selling property that would generate a tax-deductible loss and donating the proceeds. Then, deduct the loss and the charitable gift.

—Sponsored gifts: If your employer offers to match your charitable gift, you can have even more impact.

—And a partridge in a pear tree: Donors who wish to give stock, or make a gift from their IRA or donor-advised funds, must complete forms that notify of their impending gift and how to carry through their intentions. These forms can be found on the top right corner of the CCF website at www.archindy.org/CCF.

Create the space you need for a happy and holy Christmas season. Avoid the rush and reach out to the Catholic Community Foundation now at 317-236-1482 or ccf@archindy.org.
 

(Jolinda Moore is executive director of the archdiocesan Office of Stewardship and Development and the Catholic Community Foundation [CCF]. Tax or legal information provided herein is not intended as tax or legal advice. Always consult with your legal, tax or financial advisors before implementing any gift plan. If you would like to learn more about including your parish in your estate plans, please contact us any time. We exist to exclusively serve you and your parish in planned giving.) †