If you hold appreciated stocks, real estate, or investment assets that you have owned for more than a year, you can often donate such assets to support ministries, take a fair market value deduction and not pay any tax on the capital gains!

A Giving Fund works like a charitable checking account, but instead of depositing money and writing checks, you contribute all types of assets (cash, stocks, non-liquid assets), receive an income tax deduction at the time of the donation, and then go online to recommend grants to your favorite ministries and churches. It is also an opportunity to engage children and grandchildren!

If you are currently writing checks to charities, but also have appreciated stocks or mutual funds in a taxable investment portfolio, you likely have a significant opportunity to give more, simplify your giving, pay no capital gains, and improve your personal cash flow. The key is to donate these appreciated securities BEFORE you sell them.

Anyone over age 59 1/2 can usually withdraw funds from a pension, profit-sharing plan, or IRA without tax penalties. Such withdrawals are usually taxed as salary income. For this year only, you can make a permitted withdrawal from a retirement account, donate the proceeds to ministry and take a deduction for the full amount! Because of the charitable donation, most donors should not incur any Federal Income tax on the withdrawal of retirement funds if they make an offsetting gift in 2021.