While it is most common to donate with a one-time contribution or pledge using a check, cash or credit card, to a parish, the Diocese of Saginaw or other charitable organizations, donations of stock, matching gifts from businesses and corporations and qualified charitable distributions are also options.

It is prudent to consult with a financial advisor, especially if you are new to any of these giving methods to ensure you know the parameters for each of the options.

Qualified Charitable Distributions (QCDs)

A qualified charitable distribution is a direct transfer of funds from an individual’s IRA to a qualified non-profit such as a parish or the Catholic Diocese of Saginaw. Qualified charitable distributions can be counted toward satisfying your required minimum distributions (RMD) for the year.

This option can reduce tax liability because it involves donating pre-tax dollars before they become taxable income as a required minimum distribution.

Many IRAs (traditional, rollover and inherited) are eligible for qualified distribution gifts, but there are some requirements.

• The required age to begin taking distributions from an IRA is 73 years old.
• However, those 70 ½ years old or older can take qualified charitable distributions (QDCs).
• QCDs cannot be more than $105,000 to one or more qualified non-profits, even if a donor’s required minimum distribution is greater than $105,000.
• QCDs are limited to the amount that would otherwise be taxed as ordinary income.
• For qualified distributions to count toward the current year’s required minimum distribution, the funds must come out of an IRA by the established deadline, Dec. 31, 2024.

Stock donation gifts

By donating stock that has appreciated for more than one year, a donor actually gives 20 percent more than if a person sells the stock and makes a cash donation. This is because stock donation gifts avoid the donor paying capital gains taxes.

Donated stock is shares in a corporation that are donated to a charitable entity, such as your parish or the Diocese. A donor can then take a deduction in the amount of the fair value of the stock on the date of the donation.

Matching gifts from businesses and corporations

Matching gifts are corporate programs that allow employees to enhance their donations to charitable organizations, such as a parish or the Diocese. Businesses of many sizes and sectors may have matching gift programs.

Some things to know about matching gifts

• A non-profit like a parish or the Diocese of Saginaw cannot request a matching gift; employees themselves need to complete any forms.
• Companies that offer matching gifts typically have minimums and maximums in reference to an employee’s actual donation.
• For instance, a company may have a maximum amount they will match (even if the employee donates beyond that ceiling) or have different match levels for part-time and full-time employee gifts.
• Deadlines can vary greatly for company matches. It is important for employees seeking matching gifts to understand any parameters.