"Tax Smart" Giving Options

For more information, please contact Pastor Jerry at jerry@kaimukichristian.org or 735-1771


Do you own stocks, bonds, mutual funds, or ETFs that have increased in value?

With stock markets rising significantly in recent years, now may be a great time to consider giving appreciated stock instead of or in addition to your regular giving.

Gifting appreciated securities you’ve held for more than one year may provide you with multiple benefits:

  • Claim an income tax deduction for the stock’s full market value (which might be much more than what you originally paid or received it for)
  • Avoid paying capital gains tax, which you would have to pay if you sold the stock
  • Opportunity to rebalance your stock portfolio – contribute part of your concentrated positions to rebalance without paying capital gains tax, while claiming a tax deduction

If you own highly-appreciated stock, or if it’s time to rebalance your portfolio, consider giving in this tax-efficient way.


Are you age 70 ½ or older with a traditional IRA?

If you are age 70 ½ or older, have a traditional IRA, and already give to KCC, consider giving directly from your IRA via Qualified Charitable Distributions (QCDs), rather than writing checks or giving online – it can save you on taxes!

Some key benefits of QCDs include:

  • Federal and Hawaii income tax-free (not included in your gross income)
  • Counts as distributions for purposes of required minimum distribution (“RMD”) rules
  • Especially beneficial if you do not itemize tax deductions, which is more common now (you receive a tax benefit, even if you take the standard deduction)
  • Equivalent to immediate 100% deduction because the amount is never included in your income!

Important notes:

  • Distributions must be made payable to Kaimuki Christian Church or another qualified charitable organization (not to you individually)
  • You must be age 70 ½ or older on the date of distribution (the RMD age has increased to 72, but QCD gifts are still allowed starting at age 70 ½)
  • You cannot also claim a charitable deduction on the QCD amount because it was not included in your income
  • Gifts from 401(k), 403(b), and certain other types of retirement accounts do not qualify; please consult with your tax/financial advisor if a rollover to an IRA is beneficial for your specific situation
  • Certain other rules apply – please consult your tax advisor to ensure you satisfy all the QCD rules

Giving via QCDs directly from your traditional IRA can provide you with valuable tax savings on the giving you are already doing!

For more information, please contact Pastor Jerry at jerry@kaimukichristian.org or 735-1771

Please note: This has been prepared for informational purposes only. It is not intended to provide and should not be relied upon for tax, legal, or accounting advice. Please consult your own tax advisor about your specific situation.