The Diocese of Austin — with its parishes, schools and outreach ministries — offers us many opportunities to give back to God in gratitude. As you consider your end of year giving, here are some tax-smart ways for you to consider giving back in Christian stewardship.

Qualified Charitable IRA Distribution (QCD)

Individuals age 70½ or older can give up to $105,000 per year from your traditional IRA directly to a charitable organization like the Diocese of Austin without paying income taxes on the transfer. You can also use the transfer to satisfy your required minimum distributions (RMD) if you are required to make RMDs. Gifts must be received by Dec. 31 for the donation to qualify for 2024. If you have check-writing privileges on your IRA, the check must clear your account by Dec. 31 to count for this calendar year.

Donate Appreciated Stock

If you have owned stock for more than a year and it has increased in value, you may be eligible to avoid paying capital gains tax on the appreciated value and qualify for a charitable income tax deduction based on the fair market value of the asset when you itemize. The transfer must be completed by Dec. 31.

Donor Advised Funds

Contribute to a donor advised fund and you may be eligible for an immediate tax deduction on the amount if you itemize deductions. Your contribution must be completed by Dec. 31. You do not have to designate the funds to a charity this calendar year to receive the tax benefit.

Tips for End-of-Year Planning

Ensure that your will or trust is up to date and includes appropriate designations and charitable intentions.

Review your retirement plan beneficiaries to ensure your assets are distributed according to your wishes.

If you have a life insurance policy that is no longer a significant piece of your estate plan, consider making the Diocese of Austin or one of our Catholic organizations the beneficiary.

As we approach the end of the year, we are happy to visit with you about how you can make a positive impact on the Diocese of Austin and the ministries that are most important to you, and possibly receive a tax benefit at the same time! Contact Dan Wierzbowski at (512) 949-2496 or dan-wierzbowski@austindiocese.org for more information.

The information in this article is not intended to provide legal or tax advice. As always, please contact your attorney or tax advisor for such advice.