First, a brief explanation about Endowment. An Endowment Fund is a special fund that is invested for long-term growth and exists to support our multitude of ministries now and in the future. It was established to receive gifts and address a variety of future needs, beyond what our annual giving is designed to provide.
There are many ways to give a gift to the Moorings Endowment Fund other than making a direct cash contribution from your checking account. Some methods even have additional benefits, including reducing tax liabilities. Some examples are:
Donating long-term appreciated stock. This allows you to combine the tax benefits of a charitable deduction along with avoiding capital gains recognition. By avoiding recognizing capital gains, you could potentially save anywhere from 15%-23.8% in additional tax under the current tax structure, and as high as 43.3% under some of the proposed tax changes being discussed.
Transferring directly from your IRA. Called a Qualified Charitable Distribution (QCD), up to $100,000 in a year can be donated if you are age 70 ½ or older and it satisfies the Required Minimum Distribution from your IRA for the year. It can also reduce your Adjusted Gross Income for your tax filing, which determines many things like certain deduction phaseouts and Medicare Part B premiums.
Naming the fund as a beneficiary of your IRA. Because of new rules regarding inherited IRAs, naming a charitable organization as a beneficiary to your IRA may reduce future tax burdens for your heirs.
Naming the fund as a beneficiary of your Donor Advised Fund, Private Foundation, or Charitable Trust. A charitable organization needs to be associated with these types of entities in order to comply with the tax and estate planning benefits they provide.
Donating items such as real estate or your company’s stock. Before a sale or other liquidation event, a donation of a portion or all of these assets could have tax savings.
The potential benefits of these methods are unique to each individual’s situation. For more information about an Endowment gift to Moorings Church, please contact Bill Keesor, Endowment Committee Chair (firstname.lastname@example.org; 734 945-4338) or other members of the Endowment Committee (Jack Clark, Dan Hess, Peter Johnson).