Donor Advised Funds,
Qualified Charitable Distributions,
&
Mailing Checks
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Gifts Through Donor Advised Funds
You can generate a charitable deduction now and then distribute gifts to Gospel Matters over time.
A Donor Advised Fund (DAF) is one of the most beneficial and fastest growing means of charitable giving today, offering immediate tax advantages, simplified record-keeping and flexibility in choosing beneficiaries and investment options.
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A DAF simply works like a charitable savings account. You can fund your account with many different types of assets (cash, stocks, real estate, etc.) and receive an immediate tax deduction based on the fair market value of the assets at the time your account is funded. Cash donations to a DAF are deductible up to 60% of Adjusted Gross Income (AGI) and appreciated gifts, such as stock or real estate, can be deducted up to 30% of AGI. Once established, you have the freedom to decide which ministries you’d like to give to and when, over an unlimited number of years. Because the assets are invested, your account can grow over time, allowing you to give even more to Gospel Matters.
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DAFs are easy to set up with a simple application. There are no complicated legal documents to fill out. Once established, DAFs are easy to manage. You are able to manage your fund online, if you choose. There are no application fees to set up a DAF and minimal administration fees to maintain your account. As with gifts of appreciated assets (stocks, other securities, real estate, etc.) directly to charities, you receive a tax deduction for the fair market value and avoid the tax on the capital gain.
Gifts Through Qualified Charitable Distributions from IRAs
If you are 70½ or older and own an IRA, a qualified charitable distribution can benefit you and Gospel Matters.
At the age of 70½ or older, you can now make gifts, referred to as Qualified Charitable Distributions (QCDs), to charities from your IRA without paying federal income taxes on the withdrawal, provided certain restrictions are met. These QCDs from your IRA may also be used to partially or completely satisfy any Required Minimum Distributions (RMDs). Funds held in other retirement plans such as a 401(k) or 403(b) plan are not eligible for QCDs but may be rolled over to a standard IRA plan to then be used as a QCD to Gospel Matters.
There can be significant tax advantages to a direct transfer of your RMD to a charity like Gospel Matters, without receiving it as income. First, it offers you a way to reduce your Adjusted Gross Income (AGI) through a charitable donation without having to itemize deductions. Individuals may deduct QCDs up to 100% of their AGI, assuming it’s a cash distribution. Also, because AGI is used to determine your taxable income, having a lower AGI can help you stay in a lower tax bracket, reduce or eliminate the taxation of Social Security benefits or other income, potentially reduce Medicare premiums, and remain eligible for deductions and credits that might be lost if you had to declare the RMD amount as income.
To make your gift to Gospel Matters, contact your IRA administrator. All QCDs must be made directly from your IRA, with checks made out to "Gospel Matters, Inc." and mailed to the address noted below. You'll lose the deduction if the distribution is paid to you first and then passed onto a charitable organization. Each person may give up to $108,000 per year from their IRA.​
