Tap and pray: Churches using card readers for donations

"The Church of England says 16,000 religious sites now have access to portable card readers. In the U.S., hundreds of churches have installed kiosks where the faithful can swipe a card to donate. Others are popularizing smartphone apps where money can be sent over at any time." - RNS

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Don Johnson's picture

Not into the new fangled thingies. It is usually the only cheque I write each month, though.

Maranatha!
Don Johnson
Jer 33.3

Jim's picture

Donor Advised Funds

See this link on how the new tax law restricts tax deductions 

https://www.cnbc.com/2018/05/11/what-the-new-tax-law-means-for-your-char...

For starters, try a strategy called "bunching." Rather than giving every year, "give a greater amount every other year," said Amy O'Loughlin, a director in CBIZ MHM's tax and business services division in Phoenix, Arizona.

For example, instead of giving $5,000 to charity annually, accelerate the gift by giving $10,000 every two years. This way, you can get your itemized deductions over the limit one year and take the standard deduction the next.

Similarly, a donor-advised fund lets you make a charitable contribution and receive an immediate tax break for the full donation, and then recommend grants from the fund to your favorite charities over time.

How a  donor-advised fund helps:

https://coldfusion-guy.blogspot.com/2017/12/the-best-financial-advice-i-...

  • You give a large amount ("bunched") to the fund. I named my fund the "Peet Giving Fund"
  • You get a deduction on the year you bunch your donation. On the non-bunch year - we will take the standard deduction
  • Then you advise your fund to meter out grants month by month
  • The fund sends a check to the charity (in my case, my church). The church has to have an EIN (mine does)

Other benefits:

  • Say you have a highly appreciated stock in an account. If you sell it (to cash out) you will pay capital gains tax on it. If you donate it to your fund .... goes in at full value with no taxes
  • Other assets like silver coins, art (this doesn't apply to me!) can likewise be donated

The best one (my view): https://www.fidelitycharitable.org/

 

 

 

Don Johnson's picture

I need an interpreter! Don't get any of what you said! From what I gather, though, I don't think what you describe is available in Canada.

Maranatha!
Don Johnson
Jer 33.3

dcbii's picture

I just use ePay from my bank to send it directly to the church every month.  No fees.

Dave Barnhart

josh p's picture

Jim wrote:

Donor Advised Funds

See this link on how the new tax law restricts tax deductions 

https://www.cnbc.com/2018/05/11/what-the-new-tax-law-means-for-your-char...

For starters, try a strategy called "bunching." Rather than giving every year, "give a greater amount every other year," said Amy O'Loughlin, a director in CBIZ MHM's tax and business services division in Phoenix, Arizona.

For example, instead of giving $5,000 to charity annually, accelerate the gift by giving $10,000 every two years. This way, you can get your itemized deductions over the limit one year and take the standard deduction the next.

Similarly, a donor-advised fund lets you make a charitable contribution and receive an immediate tax break for the full donation, and then recommend grants from the fund to your favorite charities over time.

How a  donor-advised fund helps:

https://coldfusion-guy.blogspot.com/2017/12/the-best-financial-advice-i-...

  • You give a large amount ("bunched") to the fund. I named my fund the "Peet Giving Fund"
  • You get a deduction on the year you bunch your donation. On the non-bunch year - we will take the standard deduction
  • Then you advise your fund to meter out grants month by month
  • The fund sends a check to the charity (in my case, my church). The church has to have an EIN (mine does)

Other benefits:

  • Say you have a highly appreciated stock in an account. If you sell it (to cash out) you will pay capital gains tax on it. If you donate it to your fund .... goes in at full value with no taxes
  • Other assets like silver coins, art (this doesn't apply to me!) can likewise be donated

The best one (my view): https://www.fidelitycharitable.org/

 

 

 

Thanks Jim that’s really interesting! 

Jay's picture

With some banks, particularly the major ones, you can usually set up companies or organizations with auto bill pay and give that way as well.  Personally, I am not fond of the practice, but it’s better than forgetting to bring the checkbook to church (as I often do).

Jim, is there a minimum threshold that you needed to put in for the DAF? I know a little about this but only from the nonprofit side of things.

"Our task today is to tell people — who no longer know what sin is...no longer see themselves as sinners, and no longer have room for these categories — that Christ died for sins of which they do not think they’re guilty." - David Wells

Don Johnson's picture

Jim wrote:

 

Don Johnson wrote:

 I don't think what you describe is available in Canada.

Yes it is: http://www.canadagives.ca/donor-advised-funds/ 

Obviously not me.

I can see a benefit if you are wanting to give from something that would otherwise accrue a taxable gain, like stocks, say.

But what would be the benefit to the church? What other benefits would a donor have by doing things this way? What kinds of fees does the fund administrator charge?

 

 

Maranatha!
Don Johnson
Jer 33.3