Financial Report for December 2012
Plus: Report on Charitable Giving in Light of the "Fiscal Cliff" Compromise Legislation
"IMPACT 2012 Challenge" Sets Record!
Below is a graph showing results of during 2012 Challenge period of late November through December, including December-dated gifts received in early January. (Another $10,000 gift was received shortly after the campaign period.) We are humbled and most grateful for the large outpouring of support received during this period. Gifts included numerous small-to-large one-time donations; monthly, quarterly and annual gifts; corporate matching donations; and a sizable stock donation.
|The GPTS "Impact 2012" Challenge — Goal: $180,000|
The tables below show our overall financial condition as of the end of December 2012, marking the end of the first half of our 2012-2013 fiscal year. For the month of December, contributions totaling $147,130 from churches and individuals were $73,047 above what was budgeted ($74,083). Expenses were $14,413 above budget ($91,946).
For the 2012 calendar year, unrestricted general fund contributions from individuals and churches totaled $991,814, an increase of $168,158 over the $823,656 received in calendar year 2011 ($730,027 was received in 2010). The 2012 total, which included a $288,788 bequest, was $180,262 over the budgeted amount. Total income from all sources in 2012 was $1.06 million.
|FISCAL YEAR TO DATE|
|CAPITAL FUND UPDATE|
|Capital Campaign Goal*||$3,500,000|
|Long-term Pledges Outstanding||$588,824|
|Total Received and Pledged||$3,640,799|
*Although the formal fund-raising campaign goal has been more than realized, additional funds are needed to amortize the balance of our mortgage.
A new year is a great time to review your will, life insurance and/or retirement plans. We work with the PCA Foundation, whose professionals can help you with this review and suggest options that will help keep less of your money from going to the government while possibly also benefiting your favorite charitable causes, including Greenville Seminary. See the "Planned Giving and Estate Planning" section on this page of our web site. We recommend that your consider any of a variety of charitable giving instruments (if qualified), including a Charitable Remainder Annuity Trust, a Charitable IRA Rollover, Charitable Gift Life Insurance, or a Charitable Lead Trust.
If you have or plan to name GPTS in your will or as a beneficiary of your life insurance policy, we would be grateful to know about this for the benefit of our records and planning. Contact firstname.lastname@example.org.
The "Fiscal Cliff" Compromise and Charitable Giving
GPTS has a faithful core of supporters highly committed to our mission, and thus we trust that we may not face some of the potential detriments that other charities are facing as a result of the New Year's Day "fiscal cliff" compromise, the so-called "American Taxpayer Relief Act of 2012," enacted by Congress. Among the key provisions is a limit on charitable deductions by wealthy individuals. Write-offs grow more limited the more taxable income a person has and could reduce the value of deductions by up to 80 percent for the highest-income taxpayers, according to the Tax Policy Center.
"When surveyed, the majority of charitably-minded individuals indicate that they give because of the mission of the charity, not because of tax law incentives. However, these individuals also share that they want their charitable gifts to be as tax-efficient as possible and do seek out ways to lower their tax bill using charitable gifts," says attorney Brian Sagrestano, CEO of Gift Planning Development, LLC.
"So there are concerns that additional changes to the tax code could impact charitable giving in the future – not necessarily on the decision of whether or not to give, but on the choice of gift type and gift amount. Some groups, on the other hand, may find new incentives to give in such changes....
"The salient implications of the Act are as follows:
- High Income Earners: Those exceeding the $200,000/$250,000 and/or the $400,000/$450,000 income threshold levels will see their taxes increase in 2013. The deduction available for charitable gifts may help to offset some of these additional taxes. However, this same group likely will be subject to the new income phase-outs on itemized deductions, so the value of their charitable deduction could be slightly reduced. Each individual will need to check with his/her tax preparer.
- Those Formerly Subject to the AMT: The AMT stripped away the benefits of many income tax deductions and exemptions. For those no longer subject to the AMT, charitable gifts may prove to be an effective way to lower their tax bill.
- Investors: Gifts of highly appreciated assets continue to make sense for everyone, as the donor benefits from both an income tax deduction and avoidance of capital gains tax. For people above the $200,000/$250,000 and $400,000/$450,000 thresholds, these gifts are even more effective at lowering the tax bite.
- Those with Overfunded IRAs: The extension of the IRA Charitable Rollover will allow individuals who are required to take distributions from their IRA accounts to once again directly transfer some of those assets to charity. In so doing, they avoid the IRA distribution being added to their adjusted gross income for the year, which can trigger many of the new taxes for higher income earners."
For Sagrestano's complete analysis of the "fiscal cliff" compromise and its effect on your charitable giving, go here.
Another summary of the legislation and its effects by the Barnabas Foundation can be found here. Read The Chronicle of Philanthropy article on the legislation here.
Our affiliate, the PCA Foundation, has a bulletin concerning congressional approval of an extension of the IRA Rollover Provision for retirees. Read the bulletin here.
Sharing in the Advancement of GPTS
Visit the GPTS Development Office web site for information on ways to support and spread the word about Greenville Seminary.