Important 2020 Year-End Processing Deadlines
Waiting until the closing days of the year to make contributions and grant recommendations risks unmet deadlines for all donors to Advise & Consult Funds or Increase Funds (fka “Recommended Endowments”). We want to avoid pushing your charitable-contribution income tax deduction to next year, or your favorite charity missing its fund-raising target for this year. Accordingly, we have established certain deadlines for delivery of contributions to be credited and grant recommendations to be fulfilled in 2020.
We desire to provide you with the best possible service as you and we work together to advance and reveal the Kingdom. We believe these dates will enable us to continue meeting not only your expectations but also the expectations of all your fellow donors to the Foundation, and wanted to give you enough advance notice to plan wisely. Thank you for your understanding and the opportunity to work together in this ministry of Christ’s church.
Note as well special tax advantages for gifts made before January 1 that Congress created in the CARES Act just for 2020. These include a charitable deduction of up to $300 for contributions you make to your church or other end-user charity even if you do not itemize, and a deduction for up to 100% of your adjusted gross income for cash gifts you make to one or more single-charity funds at the Foundation. Qualified charitable distributions from IRAs to single-charity funds also remain a tax-smart giving strategy even though required minimum distributions are waived for this year. For details and gift planning ideas see the CARES Act article on our website [here], or call us soon at 678.825.1040.
We encourage you to mark your calendars accordingly…
GRANT DISTRIBUTIONS TO CHURCHES AND MINISTRIES
If you would like grant distribution checks to be mailed out before year end to charities not already approved by the Foundation, please submit your recommendations by this date. For grants to previously-approved charities, please submit your recommendations by December 14. A recommendation made after the applicable date likely will be processed in early 2021.
You must contact us to propose a gift of real estate or privately-held business interests (in limited partnerships, limited liability companies, etc.), and provide documentation of your ownership and of the property to be given (copies of deeds, share certificates, basic company governance documents, shareholder or operating agreements, etc.), no later than this date in order for us to be able to complete necessary due diligence and for you and us to be able to execute and deliver transfer documents before year end.
Due to necessary tasks outside the control of either of us – such as completion of a Phase I environmental survey for real estate gifts – we urge you to contact us as far in advance of this date as possible.
PROPRIETARY MUTUAL FUNDS
Transfers of any mutual fund held directly with the mutual fund company should be initiated by this date.
QUALIFIED CHARITABLE DISTRIBUTIONS (QCDS) AND SINGLE CHARITY FUNDS
Enrollments for single-charity funds with the PCAF specifically identifying the charitable beneficiary of each fund must be in place by this date for the PCAF to accept QCDs. A QCD received after this date without the enrollment in place will be returned to the IRA Administrator. These enrollments also must be in place by this date for direct donor contributions to single-charity funds, such as contributions made to use the special 100%-of-AGI limitation for 2020.
PUBLICLY TRADED SECURITY TRANSFERS TO PCAF (INITIATE TRANSFER TO PCAF AGENT BY DATE)
This is not our deadline, but a suggestion for avoiding tax deductions pushed to next year. Please initiate transfers of stock and mutual fund shares held in your brokerage account as early in the month as possible. Note that for purposes of income tax deduction, a gift of stock is deemed made when the stock irretrievably leaves the control of you or your agent directed to PCAF or its — not your — agent (one of its clearing accounts). Since brokerage houses are very busy with yearend transfers and other transactions, initiating your transfer by this date will help ensure that your gift is made in 2020.
CHECK, ACH, AND CREDIT CARD CONTRIBUTIONS
Checks must be dated, sent and irretrievably deposited with the postal service, addressed to PCAF, or if sent by private carrier, actually delivered to PCAF, by the end of the last day of this year in order to be eligible for an income tax deduction in this year. ACH and credit card contributions must be irrevocably ordered by this date.
Important Note: Only you can control the date of your contribution, and assure compliance with all conditions for tax deductibility. Likewise, you must maintain documentary evidence of the date of your gift. The receipt PCAF issues to you, while necessary for deductibility, does not directly establish the date of your gift under the various rules established by the IRS, but only the date of PCAF’s receipt. We cannot provide legal advice, and urge you to engage professional tax counsel to help you ensure deductibility.