Gifts of cash/securities
U.S. Postal Service offices and banks also will be closed Christmas Day and New Year’s Day. If you are planning to make a 2021 year-end, tax-deductible contribution, the following information may be helpful:
Postmarks Matter
Cash gifts that are mailed and arrive at our office by Dec. 31, 2021 are calendar year 2021 gifts. In addition, a special rule allows gifts with a valid U.S. Postal Service postmark of Dec. 31, 2021 (or earlier) to be treated as a 2021 gift – even if the gift arrives in early 2022. This special mail rule only applies to items sent through the U.S. Postal Service. Gifts mailed by private carriers like FedEx and UPS must arrive by Dec. 31, 2021.
Note: Tax-year determination of individual retirement account (IRA) distributions may be based on the check’s deposit date, not the outer envelope’s postmark. Please consult with your IRA custodian to learn how your distribution’s tax year is determined. We encourage you to send your year-end IRA distributions by mid-December every year (regardless of circumstantial delays).
In recent years, the U.S. Postal Service has been inconsistent in placing a postmark on all mail taken to a post office on December 31. Additionally, we are aware of the significant delays posed by the U.S. Postal Service this holiday season. We recommend mailing gifts on or before Monday, Dec. 23. As an extra measure to ensure accurate and timely entry of your gift, we also recommend taking the gift and envelope to your local post office and verifying that the envelope has been postmarked. Gifts bearing a valid 2022 postmark of Jan. 1, 2022 (or later) must be considered and treated, per IRS regulations, as a calendar year 2022 gift for income-tax filing purposes
Online and telephone gifts using a credit card
Making a credit card donation at year-end can qualify as a 2021 charitable donation even though the cardholder’s payment on the credit card balance is made in calendar year 2022.
Online credit and debit card gifts may be made online at lcms.org/givenow, an option available 24 hours a day, seven days a week — and an easy, secure alternative to mailing in your donation. To receive credit for a 2021 contribution, online donations must be completed no later than 11:59 p.m. Central time on Dec. 31. The electronic time stamp for a donation, created when the “Donate Now” button on the giving form is pressed and the process is complete, will determine its eligibility as a tax-deductible gift for 2021 or 2022.
Credit and debit card gifts also can be made by calling our Contributor Services Line at 888-930-4438 between 8:00 a.m. and 4:00 p.m. Central time, Monday through Friday, excluding the holiday schedule listed above. If a staff member is unable to answer, please leave a voice message indicating your desire to give over the telephone, and providing a call-back number, and we will assist you as soon as possible.
Text-to-give gifts by credit card or using PayPal
Text the phrase STRONGTOGETHER to 41444 on your smart phone or cellular device to make a gift to the LCMS, using your credit/debit card or through your PayPal account. 2021-eligible gifts may be made via text through 11:59 p.m. Central time on Dec. 31. Additional ministry options for giving using PayPal can be found at lcms.org/makeagift/faqs under the fourth FAQ (PayPal).
Gifts of securities
Contact Mission Advancement through the Contributor Services Line at 888-930-4438 to initiate a gift of appreciated securities (stocks, bonds or mutual funds) in support of the LCMS or its various ministries.
If gifting mutual funds, and to ensure receipt on/before Dec. 31, it is best to start the process before Dec. 1. Many times, gifting mutual funds requires more time – especially during the month of December. When gifting securities, the earlier this process is initiated, the more likely it can be completed before Dec. 31.
In cases where the value of stocks, bonds or mutual funds has increased since their purchase, it is better to donate the shares directly to avoid incurring capital gains taxes. Consult with your accountant or financial adviser to determine your potential capital gains tax savings and the impact of a charitable donation on your tax return for 2021.
Conversely, in situations where stocks, bonds or mutual funds have decreased in value since being purchased, it may be better to sell them outright at the lower current market value and donate the equivalent value in cash. In addition to claiming a tax deduction for the gift of cash, you may be able to claim a loss on your income tax return for selling securities at a depreciated value. Again, we advise that you consult with your accountant or financial adviser to determine whether this is in your best interest.
IRA direct charitable transfers (Qualified Charitable Distributions)
Under federal law, individuals 72 years of age or older with a Traditional Individual Retirement Account (IRA) are required annually to take a minimum distribution (RMD). You may distribute part or all of your RMD (up to $100,000) through a Qualified Charitable Distribution (QCD) to bolster the work of LCMS mission and ministry. For information or instructions on how to make a qualifying charitable transfer, contact Mission Advancement via our Contributor Services Line at 888-930-4438.
A note about year-end summary statements
As a courtesy to our cherished partners and supporters, LCMS Mission Advancement will again be sending to individuals and households a summary statement of all direct contributions to Synod, Inc., received in 2021. Because ALL gifts from 2021 must be recorded prior to generating these courtesy summary statements — and taking USPS delays into account — you may not receive your 2021 statement until March. Please be aware this statement of annual contributions is not required by the IRS for your tax preparation purposes. Should you require the total amount of your charitable gifts for tax preparation purposes prior to receiving that statement, you can call the Contributor Services Line at 888-930-4438 or send an email to mission.advancement@lcms.org. We will provide you will your total of giving for 2021, which is all you need to know to complete your tax filing. Other forms of documentation you may use as a record of your charitable giving are the receipt issued by the organization at the time your contribution was made or a bank statement. You can also access your giving history online if you have created a MyLCMS.org account.
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