As we wrap up the 2016 tax year, you may be considering how you can support Bible translation, while making your gifts in the most tax-smart way possible. Our gift planning team has pulled together their top seven strategies for supporting Wycliffe Bible Translators while enjoying tax reductions.
1. IRA Charitable Rollover
Congress has renewed a law that allows those 70 ½ or older to give from their Individual Retirement Account (IRA) directly to charity. Making direct charitable gifts from your IRA to Wycliffe or other charities allows you to meet your IRA’s annual required minimum distribution, enjoy tax advantages and make a significant charitable gift beyond your checkbook.
2. Beneficiary Designation Gifts
Naming Wycliffe Bible Translators as a beneficiary of a portion or all of a qualified asset is a tax-wise way to make a significant legacy gift. And a variety of assets can be used to make your beneficiary designation gift — retirement plans, like IRA, 401(k) or 403(b) plans; life insurance policies; commercial annuities; or investment, checking or savings accounts.
3. Gifts of Assets
When most people think about making a charitable gift, they imagine giving cash from a checking or savings account. You might be surprised to learn that you can gift real estate, mineral rights, financial securities (stocks, bonds and mutual funds) or business interest to support Bible translation. And a gift of non-cash assets can provide you with tax savings, while helping further Wycliffe’s work.
4. Donor-Advised Fund
After making a gift of cash, appreciated securities or real estate into your donor-advised fund (DAF), you can take your time deciding how to designate your charitable giving. There is no deadline for making distributions, and you’ll receive an immediate income tax deduction each time you make a gift into your DAF. For contributions of appreciated capital assets, you can avoid the capital gains tax.
5. Charitable Gift Annuities
When you create a charitable gift annuity with the Wycliffe Foundation, you are entitled to a charitable income tax deduction for a portion of the value of your gift, and we pay you fixed income payments for the rest of your lifetime. It’s a tax-wise way to increase your income or supplement your retirement, while supporting Bible translation.
6. Missionary Partnership Plan
This plan allows you to provide support for the ministry of a designated missionary for an amount and frequency that you predetermine. Your contribution, which is eligible for a current-year tax deduction, goes into an interest-bearing account, and your support continues as long as the missionary is actively serving with Wycliffe, or until funds are exhausted.
7. Charitable Bequests
A bequest is one of the easiest ways that you can leave a gift that will make a lasting impact for the charities you care about most. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to charity as part of your estate plan. The full value of this gift will be transferred tax-free, and your estate will receive an estate tax charitable deduction.