Year-End Giving—Letter from Pastor Mike
Dear Church Family,
At year end, we have the opportunity to reflect on what’s important to us and to respond with generous year end gifts.
During Thanksgiving, I gave thanks for family, our church family, for Christ-centered leaders and for a congregation growing deeper spiritually. I’m thankful for the blessings of health and family. I’m thankful for the way God surprises us with his word, and for his faithfulness to always meet us in times of solitude and prayer; for small groups to share faith and life, for worship that inspires and wakes us up to God’s presence and for a church family that is growing younger and older at the same time!
At Christmas, I reflect on how Jesus’ birth changed everything. His life redirected the course of my life! His life, death and resurrection provides forgiveness and hope of heaven. In Jesus, we experience “life and light,” we have a friend, brother and savior, a constant companion and shepherd to guide us and direct us. We have the privilege to proclaim this good news all year long ourselves and by supporting mission partners all over the world who magnify that message.
Looking forward to New Year’s Day, I remember how Paul reminds us that because we are in Christ, we are new creations. Lamentations tells us God’s faithfulness is new every morning. The Psalms tell us to sing a new song to the Lord. We can experience new life everyday! In the new year, I pray we grow deeper in our time alone with God, experiencing God’s word and his presence in new ways. I pray we grow as an intergenerational church—on mission with God, connected to one another in love, and united in our worship.
As we approach year end, would you make a special gift to Solana Beach Presbyterian Church to support the mission of God?
Below, I’ve included some examples of tax-advantaged giving that may help you as you plan year-end giving. December is typically our largest month for giving and helps us begin the new year financially healthy. Thank you for your uncommon generosity to SBPC!
TAX ADVANTAGED GIVING
As we approach year end and embark on a new decade, I’d like to remind you of two gifting strategies that benefit you as well as the church. If you have a stock or fund portfolio, you most likely know that the markets are at all-time highs. This means that you have unrealized capital gains that you will eventually have to pay taxes on when sold.
Consider rebalancing your portfolio of appreciated stock or funds to reduce your market risk by giving these appreciated positions to the church instead of giving a gift of cash. By doing so, you don’t have to pay the capital gains tax from the sale, you rebalance your portfolio, the church gets the full value of the gift, and most importantly, you keep your cash in your account. To give you an example, you might own Apple stock which a year ago were worth $150 per share. If you had bought 100 shares, it was $15,000. Today, Apple trades at $270 per share. Your investment is worth $27,000. Rather than write a check for $10,000, you could gift 40 shares valued at $10,800. Your initial cost was $6,000 for those shares, so your gain is $4,800; the amount that you must pay taxes on. At 35%, that is $1,680 going to the IRS. Instead, it can be saved and all go to the church, while you keep your $16,200 in your account. It’s a win-win.
The second giving strategy is more simple, though only affects those of us over the age of 70 ½. As you know, at this age you have to take a required minimum distribution (RMD) from your IRA. This distribution is a taxable event – it’s reported as income on your tax return. A new law enacted in 2015 allowed for a Qualified Charitable Distribution from IRA’s that were required to take an RMD. So if you are older than 70 ½, instead of taking the distribution in your name and paying income tax on that amount, you may designate a qualified charity to receive up to $100,000 per year from your IRA. You don’t report the income on your tax return, thereby not having to pay the income tax, and the charity receives the full value of your donation, avoiding the tax since they are a 501c3. Another win-win proposition.
Please consult your financial advisor for additional options and to determine the best giving method for your financial portfolio.
If you need details on how to give stock or other assets to the church, please contact Christy Ogden or call the church office at 858-509-2580.