Remember the shooting star and familiar words, “The More You Know”? NBC launched that public service campaign in 1989, offering brief reminders that a little information could make a meaningful difference. As we approach the end of the year, that same idea offers a helpful lesson for churches: people cannot consider giving options they do not know exist.
We regularly tell our members where to place their offerings, how to give online, and what their generosity makes possible. But how often do we mention that they can give stock? Or that some members can support the church directly from an individual retirement account?
November is an excellent time to begin those conversations.
A gift of stock can become a gift of ministry
Members who own appreciated stock may have an opportunity to support their church while making thoughtful use of their resources. Donating stock held for more than one year directly to a qualified charity generally avoids recognizing capital gains on the donated shares. Donors who itemize may also qualify for a charitable deduction based on the stock’s fair market value, subject to applicable tax rules and limits.
The sequence matters: members should arrange to give the stock before it is sold. Selling shares personally and then donating the cash can create a taxable gain.
The Florida United Methodist Foundation can help facilitate the receipt and sale of donated stock for your church, in most cases with no fees. Contact us before initiating a transfer so we can provide instructions and coordinate the gift.
Your church does not need to have all the answers. It needs to let members know this option exists—and where to begin.
An IRA may offer another giving opportunity
Members age 70½ or older may be eligible to make a qualified charitable distribution, or QCD, directly from an IRA to their church. A properly completed QCD can be excluded from taxable income, even when the donor does not itemize deductions. For members who must take a required minimum distribution, or RMD, a QCD can count toward satisfying that year’s requirement. The same gift cannot also be claimed as a charitable deduction.
A QCD and an RMD are different things: the RMD is the required withdrawal; the QCD is a qualifying charitable transfer that may fulfill some or all of it. Members should speak with their IRA custodian or tax adviser before taking a withdrawal personally.
The Foundation does not facilitate QCDs. Members arrange these gifts through their IRA custodian, with payment made directly to the church. Church staff can help by providing the church’s legal name, tax identification number, mailing address, and appropriate contact information.
Make the invitation simple—and repeat it
A brief bulletin notice, newsletter paragraph, giving-page reminder, or announcement during worship can open the door:
“Did you know there are several ways to support our church’s ministry? In addition to cash and online gifts, you may be able to donate appreciated stock or, if eligible, give directly from your IRA through a qualified charitable distribution. Contact the church office for stock-giving instructions or church information your IRA custodian will need. Consult your tax adviser about which option fits your circumstances.”
Share the message more than once during November and December (or year-round). Name a staff contact, connect the invitation to the ministry gifts will support, and encourage members to begin early. Financial institutions need processing time, and waiting until the final days of December can jeopardize completing a gift by year-end.
Helping people understand their options is part of caring for the people whose generosity sustains our ministries. A simple conversation may help someone give in a way that better fits their circumstances and their hopes for the church.
The Florida United Methodist Foundation remains available to answer questions and help you identify next steps as you share these giving opportunities with your congregation.
The more our members know, the more thoughtfully they can put their generosity into action.