2023 Year-End Giving Opportunities

Is it a 2023 Contribution or a 2024 Contribution?

The IRS has very strict rules on how we date contributions. The technical term is “when the donor relinquishes control of the asset.” Donations received in the collection basket through Sunday, December 31 are considered 2023 contributions. One exception to that is you can postdate a check in 2023 for January 1, 2024 and it will be treated as a 2024 contribution. All donations made January 1 or later are 2024 contributions. You cannot “pre-date” a check in 2024 with a 2023 date and have it count as a 2023 contribution. Checks that are mailed are considered donated in the year on the postmark. Plan accordingly on making any year-end contributions to be sure they are mailed or given to us on or before December 31. Stock donations are considered a donation in the year you turn over the stock to our broker. If you are interested in making a stock donation, contact Deacon Randy, [email protected] to get instructions on how to do that.


Do You Own Stock?

You can make a donation of your stock to St Katharine Drexel as another option on how to contribute to the parish. You can designate the donation for regular operations contribution and/or the building fund. There can be a tax advantage if your stock has increased in value. Talk to your tax advisor to see how that can work. Contact Deacon Randy, [email protected] to get the information on how to transfer your stock to us through our broker.


IRA Charitable Distribution

There is a special tax benefit available to owners of a Traditional IRA who are 70 ½ or older. You may instruct your IRA Plan Administrator to distribute directly to a public charity, such as St. Katharine Drexel, up to and including $100,000 without the distribution being included in taxable income. The distribution does count toward the IRA owner’s Required Minimum Distribution. The donor does not receive a charitable deduction, but the transfer is not treated as an income distribution to the donor. The donor enjoys the equivalent of a charitable deduction by avoiding the tax that ordinarily would have been due on an IRA income distribution. This is a benefit if you itemize or not. If you have any questions on this, talk to your accountant or tax advisor.