During the Christmas season, you will undoubtedly hear the scripture read of the Magi presenting gifts of gold, frankincense, and myrrh (Matthew 2:11). These precious three gifts were treasures given to Jesus, the newborn King. Here you’ll find three precious gift ideas that could help the JCS Legacy.
- Consider mentioning JCS in your will or as a partial beneficiary to life insurance or IRAs. Many of our donors and contributors are regular givers who give consistently every year. The loyalty is greatly appreciated and knowing that these faithful supporters continue to give helps meet the annual JCS budget. However, upon the passing of our faithful supporters, the giving ceases. Mentioning JCS in the will or as a beneficiary (in part or in whole) will continue their legacy of giving for many years beyond their passing. Consider a tithe from your will/IRA/estate/life insurance of 10%, or maybe a love gift of 5%. It may not sound like much, but it goes a long way in carrying out the JCS mission. Meanwhile, your family and others will still receive an inheritance of 90% or 95% of your assets.
- If you have an IRA and are over the age of 70 ½, consider a “qualified charitable distribution” which satisfies your RMD requirements, but is not taxable. Being over the age of 70 ½, you must take a “required minimum distribution” (RMD) from your IRA every year. This is a taxable event as the money that is distributed is income that is taxable. Instead of having 15%, 25%, or more of the distribution going for taxes, a “QCD” allows the distribution to go to JCS (church or other charitable organization). For example, let’s say a 72-year-old in the 25% tax bracket is required to take out $2400 from the IRA. By taking the distribution, he/she pays $600 in taxes, netting a check for $1800. By using the QCD benefit, the entire $2400 goes to JCS and Uncle Sam gets $0.
- The stock market is hitting record highs, which could mean that earnings are at higher levels too. By selling appreciated assets, you will be required to pay the income tax on those gains. In some cases, this can cause excess taxes on your Social Security, eliminate or reduce you eligibility for subsidized medical benefits or even send you into a higher tax bracket. Consider gifting those shares of stock, mutual funds or other investments to JCS. For example, if an investor bought shares of stock for $2000 and they’re currently worth $10,000, there would be an $8000 gain. If the stock were sold at the 15% capital gains rate, the income tax would be $1200. By gifting the appreciated asset to JCS, there would be zero income tax and a charitable donation of $10,000, which could be more tax savings if an itemized eduction is used on the tax return.
Stewardship of your blessings is a responsibility that continues for a lifetime and beyond. During this season of giving, consider how you can continue supporting the mission of JCS. As with any decision, spend some time in prayer.
Also, consult your financial advisor, attorney, and/or CPA to learn more details about the ideas. This information is not intended as tax or legal advice. Examples may vary depending on your tax bracket, income, and gains.
Thank you for your generosity and support.