Detailed How-To Guides

Guide 1: How to Execute an IRA QCD

Complete step-by-step process for first-time QCD donors

Before You Start

 ✅ Confirm you're 70½ or older
✅ Verify you have a traditional IRA or Roth IRA
✅ Decide how much to distribute (up to $108,000)
✅ Get Foundry Church's mailing address from church office

Week 1: Contact Your Custodian (by December 10)

Step 1: Call your IRA custodian's main number

• Fidelity: 1-800-343-3548

• Vanguard: 1-800-992-8327

• Schwab: 1-800-435-4000

Step 2: Say: "I want to make a Qualified Charitable Distribution from my IRA"

Step 3: Provide information:

• Your account number

• Amount to distribute

• Charity name: Foundry Church

• Charity address: 8350 Jones Road, Houston, TX 77065

Step 4: Choose check delivery:

• Mailed directly to church (recommended—safest)

• Mailed to you for delivery to church

• Some custodians allow online submission

Step 5: Ask timeline questions:

• When will check be issued?

• When will it arrive?

• Deadline to submit for December 31 processing?

Week 2-3: Processing

Monitor your account:

• Check that distribution processed

• Verify correct amount

• Confirm it shows as QCD (not regular distribution)

If check sent to you:

• DO NOT deposit it

• DO NOT cash it

• Deliver promptly to church office

Early January: Tax Documentation

You will receive:

• Form 1099-R from IRA custodian (shows distribution)

• Acknowledgment letter from Foundry Church

Provide to your tax preparer:

• Both documents above

• Note that this was a QCD

Tax preparer will:

• Report on Form 1040, line 4

• Mark as "QCD"

• Exclude from taxable income

Guide 2: How to Donate Stock

Complete process from identification to tax receipt

Phase 1: Identify Stock to Donate (Week 1)

Step 1: Review your taxable investment accounts

• Exclude retirement accounts (IRA, 401k)

• Exclude HSAs

• Focus on regular brokerage accounts

Step 2: Identify candidates:

• Held more than one year

• Significant unrealized gains

• Not needed for near-term expenses

Step 3: Prioritize:

• Highest gain percentage first

• Consider rebalancing needs

• Consult financial advisor if unsure

Step 4: Calculate potential benefit:

• Current value - cost basis = gain

• Gain × capital gains tax rate (15-20%) = tax saved

• Current value × income tax rate (22-37%) = deduction value

Phase 2: Prepare Transfer (Week 2)

Step 5: Contact Foundry Church office

• Request DTC transfer instructions

• Get: Account number, DTC number, broker name/contact

Step 6: Gather your information:

• Your brokerage account number

• Exact number of shares to transfer

• Stock symbol

• Contact information for your broker

Step 7: Review timing:

• Initiate by December 20 for year-end completion

• Allow 2-6 business days for transfer

• Year-end volumes may cause delays

Phase 3: Execute Transfer (Week 3)

Step 8: Contact your brokerage:

By phone:

• Call main number

• Say: "I want to transfer stock as a charitable donation"

• Provide Foundry's DTC information

• Specify shares and amount

In person:

• Visit local branch with DTC information

• Request stock transfer form

• Complete and submit

Online (if available):

• Some brokerages allow online charitable transfers

• Look for "Transfer securities" or "Gift shares"

• Follow prompts

Step 9: Confirm details:

• Correct number of shares

• Correct stock symbol

• Foundry's account information accurate

• Timeline for completion

Step 10: Get confirmation:

• Request written confirmation

• Save confirmation number

• Note date of transfer initiation

Phase 4: Track and Document

Step 11: Monitor transfer:

• Check your account for shares leaving

• Timeline: Usually 2-6 business days

• Follow up if not completed by expected date

Step 12: Confirm receipt:

• Contact church office after 5-7 days

• Verify shares arrived

• Confirm value on transfer date

Step 13: Receive tax documentation:

• Church provides acknowledgment letter

• Letter shows: Date received, number of shares, value on transfer date

• Keep with tax records

Step 14: File Form 8283:

• If gift $500-$5,000: Complete Section A

• If over $5,000: Generally not needed for publicly traded stock

• Your tax preparer will handle

Common Questions

Q: What if stock price drops before transfer completes? A: Your deduction is based on value when church receives it, not when you initiated transfer. This is why starting early matters.

Q: Can I specify which shares (tax lots) to transfer? A: Yes! Tell your broker to transfer shares with highest cost basis (lowest gain) if you want to keep some appreciation. Or transfer lowest cost basis (highest gain) to maximize tax benefit.

Q: What if transfer doesn't complete by December 31? A: Gift counts for 2026 taxes instead of 2025. Still helps the church, just different tax year.

Guide 3: How to Set Up a Donor-Advised Fund

Complete process from opening account to recommending grants

Phase 1: Choose Provider (Week 1)

Major providers:

Fidelity Charitable

• Largest provider

• Minimum: None

• Fees: 0.6% annually

• Website: fidelitycharitable.org

Schwab Charitable

• Second largest

• Minimum: $5,000 initial

• Fees: 0.6% annually

• Website: schwabcharitable.org

Vanguard Charitable

• For Vanguard fans

• Minimum: $25,000 initial

• Fees: 0.6% annually

• Website: vanguardcharitable.org

National Philanthropic Trust

• Independent option

• Minimum: $500 initial

• Fees: 0.85% annually

• Website: nptrust.org

Community foundations:

• Local option (Houston has several)

• Often higher minimums

• May offer donor events/networking

Phase 2: Open Account (Week 1-2)

Step 1: Visit provider website

• Click "Open an account" or "Get started"

• Takes 10-20 minutes online

Step 2: Provide information:

• Name, address, SSN/TIN

• Choose individual or joint account

• Name your fund (e.g., "Smith Family Fund")

Step 3: Initial contribution:

• Can start with cash or securities

• Decide amount for 2025

• Remember: This is when you get tax deduction

Step 4: Choose investments:

• Cash (0% return, safest)

• Conservative portfolio

• Growth portfolio

• Custom options

• Can change anytime

Step 5: Submit application:

• Electronic signature

• Review and confirm

• Usually approved within 1-2 business days

Phase 3: Fund the Account (Weeks 2-3)

For cash contributions:

• Wire transfer (fastest)

• Electronic bank transfer (2-3 days)

• Check (allow 7-10 days)

• Must complete by December 31 for 2025 deduction

For stock contributions:

• Follow stock donation process (see Guide 2)

• Transfer to DAF provider instead of church

• Same timeline concerns

• Get confirmation

Confirmation:

• Provider sends confirmation

• Shows contribution amount

• This is your tax documentation

• Keep for records

Phase 4: Recommend Grants (Anytime)

When ready to support Foundry Church:

Step 1: Log into DAF account

• Click "Recommend a grant"

• Search for Foundry Church (usually in database)

• If not found, provide: Name, address, EIN

Step 2: Specify amount and timing:

• One-time or recurring

• Specific date or immediate

• Special instructions if any

Step 3: Submit recommendation:

• Provider reviews (usually 1-2 days)

• Almost always approved

• Check sent to church

Step 4: Church receives:

• Check from DAF provider (not from you)

• Receipt shows contribution is from your fund

• You receive confirmation

Tax Implications

Year of contribution:

• Deduct full amount contributed to DAF

• Must itemize to benefit

• Limited to 30% AGI for appreciated securities, 60% for cash

Years of grants:

• No additional tax impact

• Already took deduction when contributed

• Grants not reported on your tax return

Best Practices

 ✅ Contribute in high-income years (bonuses, stock sales, business sale)
✅ Recommend grants consistently to maintain church support
✅ Keep grants above minimums (usually $50-$100 per grant)
✅ Review investments annually to ensure appropriate risk level
✅ Document everything for your records

These guides provide step-by-step details for implementing each strategy. For questions specific to your situation, consult the church office or your financial/tax advisor.