If you own stocks, bonds, or mutual fund shares that have grown in value, giving those shares directly to the church can be one of the most efficient ways to give.
How it works. When you sell appreciated stock, you owe capital gains tax on the growth. When you give the shares directly to the church, you do not sell them, so you generally do not pay that tax. The church, as a tax-exempt organization, can sell the shares and receive their full value.
The potential benefit. If you itemize deductions and have held the shares for more than one year, you can generally deduct the fair market value on the date of the gift, within IRS limits (generally up to 30% of your adjusted gross income for appreciated securities given to a church). You get the deduction and avoid the capital gains tax.
Good to know:
Give shares that have gone up in value. If shares have dropped below what you paid, it usually makes more sense to sell them, claim the loss, and give the cash.
Shares held one year or less are generally deductible only at your cost basis, which reduces the advantage.
The gift must be transferred directly from your brokerage account to the church's account. Please contact the church office for our brokerage transfer instructions before you initiate a transfer, so we can identify and acknowledge your gift.
Gifts of securities are not cash, so they do not count toward the new non-itemizer deduction described below.
Note: To ensure receipt of your gift, please notify or carbon copy Larry Watson, Church Business Administrator when submitting this form.
Questions
Contact Larry Watson, Church Business Administrator for more information.