Tithing From the Heart

Posted on February 6, 2013 by Stewardship Foundation

The concept of giving away 10% of what we have stems from the Old Testament law that required that a tenth of all produce, flocks, and cattle be given to support the priestly class in ancient Israel. Then the Levites, in turn, were to give a tenth of that support to the high priest. Also, every three years, there was an additional tithe for foreigners, orphans and widows, and another to support festivals.

During the New Testament times came Jesus who made it clear that the old laws were now abolished and replaced with an obligation to be generous to those in need (Matthew 25:31-46). He didn’t specify how to be generous, but made it clear that we must be. Jesus further insinuates that because there is no limit to the Father’s generosity, we should not limit our generosity. However, many of us are not able to be as generous as our Father, so the 10% tithe continues to be the ideal goal for Christians.

tithing Fast forward to today – how are we doing under the new law? The Chronicle of Philanthropy has a How America Gives section that allows you to explore philanthropy in America, and even drill down to state, city, and neighborhood.

We found the most generous states to be Utah and Mississippi where the typical household gives more than 7% of its income to charity, while Massachusetts and 3 other New England states give less than 3%. Ohio ranks 37 out of 51 states in percent of income given, just 4.1%. Visit the website to see how you compare to your own city and neighborhood.

The rich aren’t the most generous. Middle-class Americans give an average of 7.6% to charity, compared to 4.2% for people making $100,000 or more. Rich people who live in neighborhoods with other rich people give a smaller share of their income to charity, but if that rich person lives in a more diverse neighborhood, they give more. It would appear that keeping up with the Jones’ makes one less generous, but generosity can come from another source – our time.

There’s widespread belief that charities exist to help needy people and that’s why we give. However, we have found that “cheerful givers” (2 Corinthians 9:6-7) prefer to support causes that mean something to them. The Stewardship Foundation can help you explore giving opportunities with charities that support these causes.

Turned 70-1/2 last year?

Posted on January 11, 2013 by Stewardship Foundation

Charities are still reeling from the economic downturn of the few years. Frankly, many of them are hurting. But if you are at least 6 months over 70 years old and you’re required to take more from your IRA than you need, then you can make one of these charities’ life a bit brighter. But you have to hurry.

IRS deadline looms The Feds recently enacted tax legislation to allow a distribution to charity from any traditional or Roth IRA up to a maximum of $100,000 per donor. The distribution has to be made directly from your IRA to the charity, so you won’t have that warm fuzzy from penning the paper, but you’ll still be doing a world of good.

There’s some fine print in this deal that ends February 1, 2013, so if you want to take advantage of this distribution to charity we can advise how to do it correctly and help you contact your IRA custodian or representative to arrange for the proper transfer of funds.

If you qualify, and want to make a move now, we encourage you to learn more about the charities that uphold the values shared by the Stewardship Foundation – those that are catalysts for positive, life-affirming change in our communities.

We will work with your tax advisor, attorney and financial advisor to determine if this is the right financial move for you now – but time is running out. Contact Joe Finneran or Patrick Finneran to start the conversation today.

“Deduct Now, and Give Later”

Posted on December 14, 2012 by Patrick Finneran

The New Year is almost here and the giving season is in full swing. People are donating to charity more than usual and they must make numerous decisions during uncertain tax law changes. With the fiscal cliff deadline just weeks away, we know changes in government spending and taxes are looming. One major tax change Taxpayers fear is that Washington will cut tax deductions for charitable gifts as soon as next year.

This very concern is addressed in a recent Wall Street Journal article titled “Deduct Now, and Give Later”. Author Laura Saunders highlighted the value of Donor Advised Funds as she offers the following scenario where a Donor Advised Fund would make sense to set up before 2012 ends:

“…a couple earning $200,000 gives $20,000 in cash to a charitable fund this year. They take a 2012 deduction for $20,000, and the money goes into a subaccount in their name at a sponsoring nonprofit organization.

Once in the subaccount, the money is invested and can grow tax-free until the couple designates eligible groups to receive it, at which point there isn’t any deduction. There isn’t a required annual payout, so the couple might give nothing in 2013 and then a large donation in 2014, to one church, charity or school—or many. The sponsor handles all tax paperwork, and some allow payouts of as little as $50.”

The Stewardship Foundation can assist donors and investors in setting up a Donor Advised Fund and help them receive a tax deduction for 2012 up until December 15, 2012.

For more explanations and charitable giving ideas, visit our ‘Donors’ Webpage.