Bethlehem Connect February 2018 | Page 3

Bethlehem Lutheran Church Twin Cities Annual Meeting Saturday, February 3, 9:30 am at Minneapolis campus Votes for new representatives on the Council will be taken. The slate of candidates is posted at both church campuses. Budget will be determined. Conversation about where we've been and where we're going will take place. We have much for which to be thankful. We hope you'll make every effort to come for the whole morning as we engage in work that contributes to the Bethlehem story that continues to unfold. YOUR GIVING MAKES A DIFFERENCE by Pastor Bob Wertz, Pastor of Stewardship and Planned Giving With the final passage of the Tax Cuts and Jobs Act of 2017, we want to provide clear and accurate information to help donors understand what some of the implications of the final new law are. In the months leading up to the passage of the largest tax reform act since 1986, many people were concerned that charitable contributions would be adversely affected by proposed changes that would have drastically reduced the number of donors who itemize their charitable gifts. Reliable industry sources predicted that the new tax law would cause charitable giving to fall by billions of dollars. However, in the final version of the bill, some very favorable provisions prevailed: • At 10:15 am we'll be offering 6 WOW Workshops to equip us to enrich the Sunday morning worship experience. Workshops will be available for ushers, readers, hospitality, greeters, communion servers and new member mentors. You're welcome to try something new or go to a workshop for a ministry area you've been part of for years. You choose! Minnetonka campus will meet with Pastor Meta learning more about their new worship leader teams. • • • God Dreams Big... Dear Sisters and Brothers in Christ, Thank you for your generous response to the matching gift drive initiated at the end of 2017. We exceeded our goal, receiving a little over $50,000. With the promised matching gift, that means together we invested $90,000 to support the ongoing mission of Bethlehem Lutheran Church Twin Cities. God dreams big and through your generosity God is at work to care for those in need and share the good news of Jesus Christ. Tha nk you! And thank you for your ongoing commitment to this life-giving work to which God calls us. With grateful hearts, Pastors Mary & Ben • • While a number of deductions, credits, and adjustments were repealed or curtailed, the charitable deduction came through the process essentially unscathed (and was even enhanced for some donors making larger gifts). The House, Senate, and final conference versions maintained the charitable deduction and expanded the overall adjusted gross income limitations for the deductibility of charitable gifts by 20%, raising the annual limitation from 50% to 60%. While the House proposal would have drastically reduced the number of taxpayers who itemize, the final legislation featured changes introduced by the Senate version that preserved the benefit of itemizing for a much larger percentage of individuals who itemized deductions in the past. For those who will no longer itemize deductions because of the expanded standard deduction and other factors, many will find their overall income tax bill reduced under the new tax law, increasing discretionary income that can be spent, saved, or donated to charity. While the nuances of the new law are complex and impact different people in different ways depending on their sources of income and other factors, it’s clear that the income tax deduction for charitable giving not only survived but was expanded in some cases. (This is true of both current and deferred gifts. The new law makes no changes in provisions related to charitable gift annuities, remainder trusts, lead trusts, or other tax-qualified deferred gifts). There were also no changes to the IRA rollover provisions that will also grow in importance as over 3 million baby boomers reach the qualifying age of 70 ½ every year during the coming decade. The virtual elimination of the federal estate tax for 99.9% of Americans will create additional resources and incentives for those donors who wish to extend the reach of their philanthropy beyond their lifetime. We’re in the process of organizing some educational events at both campuses to provide additional help for members as they figure out the provisions of the new tax law. Look for future updates in the CONNECT newsletter, on our website, or contact me directly at [email protected] or 612.312.3368. 3