IRS Issues 2008 Business Mileage Rate

WASHINGTON — The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

• 50.5 cents per mile for business miles driven;
• 19 cents per mile driven for medical or moving purposes; and
• 14 cents per mile driven in service of charitable organizations.

The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.

The mileage rate for charitable miles is set by law.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.

Revenue Procedure 2007-70 contains additional information on these standard mileage rates.

Source: IRS Website Article.

http://www.ffplan.com/2007/11/28/irs-issues-2008-business-mileage-rate/

Year-End Giving Ideas

by Tom Conway

As we approach the close of another year, here are some giving ideas to consider. This article examines these current year planning ideas:

* IRA Charitable Rollover
* Gifts of Appreciated Assets
* Year-end bonuses
* Non-liquid gifts
* Prepaying 2008 contributions
* Estate Planning Ideas
* Donor Advised Fund.
* The Disclaimer Funded Donor Advised Fund

1. IRA Charitable Rollover – Through December 31, 2007, any of your donors who are over 70 ½ on the date of the rollover can give up to $100,000 to charity from their IRA accounts. This distribution has to go directly to a public charity, but cannot be made to a donor advised fund, a supporting organization, or a private foundation. At NCF however, we have created what is called a “Designated Fund”.

A “Designated Fund” is a single charity fund where the donor designates the charity that they want the money to go to. The donor can then determine the amount and the timing of the grants from that account. If the donor wants to split up the $100,000 among multiple charities, they would then create multiple designated funds.

So if you want to give $100,000 from your IRA to your church and three other charities this year, but didn’t want all of it to go to any of the recipients in 2007, you could make a $100,000 gift to four designated funds, and then distribute the money to those charities on your own timetable.

Since this provision expires at the end of 2007, if you have a large IRA, you might want to prepay your giving for multiple years to their favorite charities by using this tool.

2. Gifts of Appreciated Assets – With the jump in the market this year, you may have appreciated stocks or mutual funds. If you have held these assets for more than a year, they can be great assets to give. You get a deduction for the fair market value (which you can deduct up to 30% of your adjusted gross income), and once the asset is liquidated you can give the proceeds out of your donor advised account to the charities of your choice. Finally, if you liked the position you held, you can take their cash and go back and buy the position and now have a higher basis.

Read the whole story.

Read the disclosure.

Tom Conway serves as the Executive Vice President, Ministry and Advisor Services of the National Christian Foundation of Atlanta, Georgia and a Charter Member of Kingdom Advisors.

He spearheads the work of the National Christian Foundation with ministries and professional advisors. In addition Tom has done both ministry and development consulting, and serves on the board on numerous non-profit organizations. Tom and his wife Susan have four children and live in Atlanta, Georgia.

http://www.ffplan.com/2007/11/13/year-end-giving-ideas/

Developing Your Personal Giving Plan

by Calvin Edwards

Most of us spend more time planning a vacation than we do planning our giving. This is all the more remarkable when we recognize that Americans are tremendously generous and about 2% of the Gross Domestic Product is made up of donations.

Arguably, in most households their giving is the least contemplated “major purchase” each year.

Bill Gates said, “Giving money effectively is almost as hard as earning it in the first place.” It seems we often shy away from that hard work and give reactively with our instincts. Daryl Heald of Generous Giving has said that much giving is like tipping-we give on an impulse if we like what we see.

But society’s great philanthropists have been much more strategic and reflective about their giving. John D. Rockefeller said, “Giving should be entered into in just the same careful way as investing . . . . Giving is investing.”

In his famous essay, “Wealth,” Andrew Carnegie stated, “It is well to remember that it requires the exercise of not less ability than that which acquired the wealth to use it so as to be really beneficial to the community.”

Religious givers who see themselves as stewards of God’s resources should be even more careful to ensure that their giving is effective and well planned. One way to exercise the kind of care of which Rockefeller speaks is to develop a written giving plan.

In their book, Inspired Philanthropy, Tracy Gary and Melissa Kohner state, “Creating and using a giving plan will give you a sense of control, purpose and direction… A thoughtfully developed and conscientiously implemented giving plan will tell you where your philanthropic hours and dollars are going” (p. 3).

Here are a few pointers to help develop your own personal giving plan:

1. Plan annually, at the end of each year. Make it a part of your New Year’s Resolutions.
2. Pray through what you believe God would have you do; be guided by your passions, beliefs, and convictions. In light of how God made you, what should you support?
3. Plan to give promptly and regularly. Don’t do it all at year-end.
4. Set “for sure” goals, and “stretch” goals. Ron Blue’s model of “should give . . . could give . . . and would give” is excellent (see his book Generous Living, pp. 123-129).
5. Include gifts from four asset classes-finances, time, skills & influence and things.
6. Leave room for spontaneous and whimsical giving-especially for unexpected personal needs of others.
7. Scripture says to support the poor and needy-don’t overlook that sector.
8. Include your spouse; don’t make it a private matter.

So what does a giving plan look like? To get started, a single piece of paper will do. Write out a giving mission statement-what you believe you should accomplish through your giving.

Then identify the 2-3 sectors you wish to support. I use 11 for givers focused on faith-based organizations: urban, poverty & disaster relief, evangelism, education, children & youth, discipleship, family, public policy & advocacy, arts & culture, human services, and church & denomination.

Next, list the organizations you will support in each sector to which you are committed, or note that you need to find one. Finally, after careful thought and prayer, put down the amount you will give-money, time, skills and things-and when you will make the contributions.

Don’t forget to pencil in the stretch goals to which you will rise if circumstances permit.

With these simple steps you will have a basic giving plan, something to guide in your personal philanthropy. It can be enhanced later, but for now you will have taken a big step towards intentional giving.

After more than 20 years of executive management in the nonprofit community, Calvin Edwards now serves as an advisor to high-capacity donors to nonprofit and faith-based organizations.

Previously, he was executive vice president for Walk Thru the Bible Ministries in Atlanta, GA and subsequently ran Peter Lowe International in Tampa, FL.

More recently he was vice president at Ronald Blue and Co., which offers financial planning and investment management services to high-net worth families.

Calvin Edwards & Company is a philanthropic consulting firm located in Atlanta, GA. For more information on the firm and their services visit their website at www.calvinedwardscompany.com.

http://www.ffplan.com/2007/11/15/developing-your-personal-giving-plan/

The Mystery of the Seed

I’ve been busy researching and writing content for my new website at www.LackAttack.com So, this morning I was reading my Bible and just kind of “floating around” in spiritual thought. It’s all part of my early morning routine. I get up somewhere between 4:30 and 6:00 each day, just depends on how much sleep my body wants. I make myself a hot cup of coffee with half-and-half cream and come back to bed to read my Bible, pray and study. This is my favorite time of the day . . . it’s my Secret Place. 

So this morning, as I was enjoying this time, I looked over and saw a log book where I enter the financial “seed” that I sow. It’s an idea I picked up from a friend a long time ago, and I have been pretty faithful about it. I used my words so “fertilize” the seed for which I am still awaiting the harvest. Then a new thought came to me. The power in those seeds is not anything I did to them. My only part was obeying God and planting the seed. But power in those seeds was from God. He is the “generator” within.

I starting thinking about seeds and my mind’s eye pictured a dry kernel of corn. By the time the kernels are off the ears and dried out for the next season’s planting, they’re pretty hard and almost dead looking.  But way down, deep inside that single kernel of corn is life! Explosive life! It’s hard to imagine how so much could come out of such humble beginnings.

God is the author of the life. The Creator! His creative power is stored up inside that hard and lifeless-looking seed! But, in truth it is not lifeless at all. Rather, it’s full of life! The Bible calls the financial gifts we give “seeds.” And they too have explosive life in them. Not because of anything we do to them, but because of the power and life the Creator put in them. Just like the simple kernel of corn, our dollar seeds can multiply! The Bible says it can multiply 30, 60, or an hundred fold! That’s a pretty good harvest. AMEN!

http://susanusa.wordpress.com/2007/11/10/the-mystery-of-the-seed/

Year-End Giving Ideas

by Tom Conway

As we approach the close of another year, here are some giving ideas to consider. This article examines these current year planning ideas:

* IRA Charitable Rollover
* Gifts of Appreciated Assets
* Year-end bonuses
* Non-liquid gifts
* Prepaying 2008 contributions
* Estate Planning Ideas
* Donor Advised Fund.
* The Disclaimer Funded Donor Advised Fund

1. IRA Charitable Rollover – Through December 31, 2007, any of your donors who are over 70 ½ on the date of the rollover can give up to $100,000 to charity from their IRA accounts. This distribution has to go directly to a public charity, but cannot be made to a donor advised fund, a supporting organization, or a private foundation. At NCF however, we have created what is called a “Designated Fund”.

A “Designated Fund” is a single charity fund where the donor designates the charity that they want the money to go to. The donor can then determine the amount and the timing of the grants from that account. If the donor wants to split up the $100,000 among multiple charities, they would then create multiple designated funds.

So if you want to give $100,000 from your IRA to your church and three other charities this year, but didn’t want all of it to go to any of the recipients in 2007, you could make a $100,000 gift to four designated funds, and then distribute the money to those charities on your own timetable.

Since this provision expires at the end of 2007, if you have a large IRA, you might want to prepay your giving for multiple years to their favorite charities by using this tool.

2. Gifts of Appreciated Assets – With the jump in the market this year, you may have appreciated stocks or mutual funds. If you have held these assets for more than a year, they can be great assets to give. You get a deduction for the fair market value (which you can deduct up to 30% of your adjusted gross income), and once the asset is liquidated you can give the proceeds out of your donor advised account to the charities of your choice. Finally, if you liked the position you held, you can take their cash and go back and buy the position and now have a higher basis.

Read the whole story.

Read the disclosure.

Tom Conway serves as the Executive Vice President, Ministry and Advisor Services of the National Christian Foundation of Atlanta, Georgia and a Charter Member of Kingdom Advisors.

He spearheads the work of the National Christian Foundation with ministries and professional advisors. In addition Tom has done both ministry and development consulting, and serves on the board on numerous non-profit organizations. Tom and his wife Susan have four children and live in Atlanta, Georgia.

http://ffplan.wordpress.com/2007/11/13/year-end-giving-ideas/

Developing Your Personal Giving Plan

by Calvin Edwards

Most of us spend more time planning a vacation than we do planning our giving. This is all the more remarkable when we recognize that Americans are tremendously generous and about 2% of the Gross Domestic Product is made up of donations.

Arguably, in most households their giving is the least contemplated “major purchase” each year.

Bill Gates said, “Giving money effectively is almost as hard as earning it in the first place.” It seems we often shy away from that hard work and give reactively with our instincts. Daryl Heald of Generous Giving has said that much giving is like tipping-we give on an impulse if we like what we see.

But society’s great philanthropists have been much more strategic and reflective about their giving. John D. Rockefeller said, “Giving should be entered into in just the same careful way as investing . . . . Giving is investing.”

In his famous essay, “Wealth,” Andrew Carnegie stated, “It is well to remember that it requires the exercise of not less ability than that which acquired the wealth to use it so as to be really beneficial to the community.”

Religious givers who see themselves as stewards of God’s resources should be even more careful to ensure that their giving is effective and well planned. One way to exercise the kind of care of which Rockefeller speaks is to develop a written giving plan.

In their book, Inspired Philanthropy, Tracy Gary and Melissa Kohner state, “Creating and using a giving plan will give you a sense of control, purpose and direction… A thoughtfully developed and conscientiously implemented giving plan will tell you where your philanthropic hours and dollars are going” (p. 3).

Here are a few pointers to help develop your own personal giving plan:

1. Plan annually, at the end of each year. Make it a part of your New Year’s Resolutions.
2. Pray through what you believe God would have you do; be guided by your passions, beliefs, and convictions. In light of how God made you, what should you support?
3. Plan to give promptly and regularly. Don’t do it all at year-end.
4. Set “for sure” goals, and “stretch” goals. Ron Blue’s model of “should give . . . could give . . . and would give” is excellent (see his book Generous Living, pp. 123-129).
5. Include gifts from four asset classes-finances, time, skills & influence and things.
6. Leave room for spontaneous and whimsical giving-especially for unexpected personal needs of others.
7. Scripture says to support the poor and needy-don’t overlook that sector.
8. Include your spouse; don’t make it a private matter.

So what does a giving plan look like? To get started, a single piece of paper will do. Write out a giving mission statement-what you believe you should accomplish through your giving.

Then identify the 2-3 sectors you wish to support. I use 11 for givers focused on faith-based organizations: urban, poverty & disaster relief, evangelism, education, children & youth, discipleship, family, public policy & advocacy, arts & culture, human services, and church & denomination.

Next, list the organizations you will support in each sector to which you are committed, or note that you need to find one. Finally, after careful thought and prayer, put down the amount you will give-money, time, skills and things-and when you will make the contributions.

Don’t forget to pencil in the stretch goals to which you will rise if circumstances permit.

With these simple steps you will have a basic giving plan, something to guide in your personal philanthropy. It can be enhanced later, but for now you will have taken a big step towards intentional giving.

After more than 20 years of executive management in the nonprofit community, Calvin Edwards now serves as an advisor to high-capacity donors to nonprofit and faith-based organizations.

Previously, he was executive vice president for Walk Thru the Bible Ministries in Atlanta, GA and subsequently ran Peter Lowe International in Tampa, FL.

More recently he was vice president at Ronald Blue and Co., which offers financial planning and investment management services to high-net worth families.

Calvin Edwards & Company is a philanthropic consulting firm located in Atlanta, GA. For more information on the firm and their services visit their website at www.calvinedwardscompany.com.

http://ffplan.wordpress.com/2007/11/15/developing-your-personal-giving-plan/

IRS Issues 2008 Business Mileage Rate

WASHINGTON — The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

• 50.5 cents per mile for business miles driven;
• 19 cents per mile driven for medical or moving purposes; and
• 14 cents per mile driven in service of charitable organizations.

The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.

The mileage rate for charitable miles is set by law.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.

Revenue Procedure 2007-70 contains additional information on these standard mileage rates.

Source: IRS Website Article.

http://ffplan.wordpress.com/2007/11/28/irs-issues-2008-business-mileage-rate/

Staying in the Will of God

http://thekeyofdavid.wordpress.com/2010/09/22/staying-in-the-will-of-god/

Understanding French Sauces (Part One)

http://tipsfortips.wordpress.com/2010/06/22/understanding-french-sauces-part-one/

The Money Answer Book

http://mikesaturday.wordpress.com/2010/05/27/the-money-answer-book/

Next Page »