End of Year Giving

“Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.” (2 Corinthians 9:6)

8 “Moreover, brethren, we make known to you the grace of God bestowed on the churches of Macedonia: 2 that in a great trial of affliction the abundance of their joy and their deep poverty abounded in the riches of their liberality. 3 For I bear witness that according to their ability, yes, and beyond their ability, they were freely willing, 4 imploring us with much urgency that we would receive the gift and the fellowship of the ministering to the saints. 5 And not only as we had hoped, but they first gave themselves to the Lord, and then to us by the will of God.”  

(II Corinthians 8:1-5)

End of year charitable gifts are the ultimate gift. According to Charity Navigator approximately 31% of all annual giving occurs in December and approximately 12% of all annual giving occurs in the last three days of December. If you have a mailbox, you may have received at least one letter from a nonprofit organization asking for a financial gift by the end of the year. This is a highly personal, and an emotional decision. 

Regardless of your financial situation, helping others has a two-fold effect: helping someone in need makes you feel better about yourself, and research shows that helping others who are less fortunate makes people happier. Seeing the smile on one of the Tupelo Children’s Mansion kids face when they open a present or knowing that our missionaries are provided for because you followed the leading of the Lord and gave an end of year gift can be very satisfying. The end of the year is an opportunity to focus on what we have been saying all year long. We believe in giving God our first and our best and that He will bless the rest. 

There are usually financial advantages to making charitable contributions at the end of the year. You may be able to take advantage of employer matching. Some employers match charitable donations, although they may place dollar limits on them or time limits. Some companies match rates of two or three times the amount given by an employee. This is a wonderful way to bless a ministry like UPCI Global Missions, North American Missions, your local church, or a Bible College that you love and receive a tax advantage. Check with your Human Resource department to find out if your company has a gift matching plan. 

IRA Charitable Rollovers are another great tool to use when giving. If you have a traditional IRA, you will need to start taking required minimum distributions (RMDs) when you reach age 70.5. As traditional IRAs are tax-deferred, you will need to pay federal income tax on these distributions, but you can avoid those taxes if you donate your RMD directly to a qualified charity. This is called an IRA charitable rollover, though you may sometimes see it referred to as a qualified charitable distribution (QCD).

This means that rather than paying tax on the money, it goes directly to a cause or ministry you believe in and want to support. This could also have the effect of reducing the impact of some tax credits and deductions such as Social Security and Medicare.

Gifts generate tax deductions that can be very beneficial to you and your family. Tax deductions make it possible for motivated people to give more without increasing the cost of their gift. To count toward your taxes, you must make contributions by December 31^st of the calendar year. 

As this year comes to an end consider giving your greatest gift to the ministry that you love. The UPCI’s non-profit foundation, the United Pentecostal Foundation, is always available to assist you with any planned giving questions or needs you have.