On-line and Tax-Efficient Giving
Thank You for Your Generosity. It is Making a Difference!
“Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.” (2 Corinthians 9:7).
Grace Church is a member congregation of the Presbyterian Church in America, a 501(c)(3) organization. Grace Church is a member congregation of the Presbyterian Church in America. Grace and the PCA all are tax-exempt organizations, contributions to which are deductible against federal and state taxable income (subject to limitations provided in applicable law).
Due to the Covid-19 pandemic, some may prefer to give on-line, and some will want to continue giving in this way even after the pandemic subsides.
On-Line Giving to Grace:
You have two on-line giving options here to choose from:
- Grace General Fund
- Coronavirus Assistance Fund*
*Grace’s Coronavirus Assistance Fund was established to aid members adversely affected by layoffs or other job displacements resulting from the pandemic. Moneys not needed for this purpose will be used to assist missionaries adversely affected or for the Grace General Fund.
Our missions webpages provide information of how to donate directly to the our “core” and “visiting” missionaries.
Under existing federal tax law, there are several simple tax-efficient ways of giving, ways that reduce personal income tax (in effect changing what would be tax dollars into kingdom dollars), and enable greater giving. Here are a few to consider.
Gifts of appreciated property. Gifts to a 501(c)(3) charity of appreciated property— like publicly traded stocks or mutual funds that have risen in value – allow the donor to deduct the full amount of the donation without having to pay taxes on the capital gains. This is like obtaining a double tax deduction. See https://www.irs.gov/publications/p526#en_US_2019_publink1000229754. “The PCA Foundation can assist you in this. Visit: https://pcafoundation.com/.
Gifts from Traditional IRAs. If you are 70 ½ or older, you can distribute directly from a Traditional IRA to a 501(c)(3) charity without having to declare that amount as taxable income. This exclusion has the same effect as a deduction, or better because one can have this exclusion without having to itemize a deduction and lose the standard deduction. Such Qualified Charitable Checks for QCDs from IRAs should not be paid to you but should be paid directly to the charity. Visit https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals. For those interested in supporting multiple charities over time in this way, the PCA Foundation can assist.
Donor Advised Funds. The PCA Foundation’s “Advise & Consult Fund” is a donor-advised fund with no fees. Donate cash and other assets (stocks, bonds, mutual funds, family and other closely-held business interests, and real estate) to your fund. Receive a tax deduction for the current tax year and recommend grants at your pace to your church and favorite Christian ministries.” https://pcafoundation.com/individuals/advise-consult-fund/. The PCA Foundation also provides a donor-advised fund that is credited with investment earnings and bears a competitive balance-based charge, called the ‘Increase Fund.
CARES Act Provisions. The Corona Virus Aid, Relief and Economic Security Act has two potentially beneficial provisions. First, those taking the standard deduction can claim up to $300 in charitable donations to 501(c)(3) charities as well. Second, for 2020 only, those who itemize can deduct cash contributions up to 100% of their adjusted gross income, instead of the prior 60% limit. This can open up some tax-efficient strategic giving, such as making large gifts together with liquidating (and diversifying) highly-appreciated property, or converting a traditional IRA to a Roth IRA.
Do not consider this tax or legal advice. Tax laws are complicated, and individual situations differ. Please consult your tax advisor or personal attorney.