Tax-Advantage Giving at Calvary Chapel Flathead Valley

Many people know they can deduct donations to charity from their income taxes, but increasing your knowledge of tax planning strategies can maximize your giving impact.

• Required Minimum Distribution form IRA and 401K – Taxpayers with tax-deferred savings accounts (e.g. IRA or 401K accounts), when they reach the age of 72 ½ (73 if you reach age 72 after Dec 31,2022) are required to take a Required Minimum Distribution (RMD). These distributions are taxable at the taxpayer’s marginal tax rate. However, if the distributions are made payable to a qualified charitable organization such as a church, then the distribution is not taxable to the taxpayer at the time of withdrawal. This is especially helpful when the taxpayer does not itemize deductions.
• Long-term appreciated assets—If you donate long-term appreciated assets like bonds, stocks, or real estate to charity, you generally don’t have to pay capital gains, and you can take an income tax deduction up to 30% of adjusted gross income if you itemize deductions on your tax return.
• Combine multi-year deductions into one year– Many taxpayers won’t qualify for the necessary deductions to surpass the standard deduction threshold established by tax reform in 2017. However, you can still receive a tax benefit by “bunching” multiple years’ worth of charitable giving in one year to surpass the itemization threshold. In off-years, you take the standard deduction
• Estate Planning– By naming a charitable organization such as a church in your will or as a beneficiary of a qualified insurance policy, retirement plan, or trust, you could potentially reduce or even eliminate the burden of the estate tax for your heirs. (It is important to consult your tax and estate planning advisors regarding modifications to your estate plans.)

If you would like to discuss these or other giving options, please contact our treasurer through the church office at (406) 752-4871.