“TAKING STOCK” OF YOUR GIFT GIVING

• Details
• Parent Category: Landmark, 2012
• Published on Tuesday, 31 January 2012 17:36

Using appreciated securities (stocks, bonds, and mutual funds which are worth more now than when you purchased them) to fund a charitable gift can have considerable tax advantages for the donor.  By giving an outright gift to the church, you can bypass the capital gains tax that would be due on an ordinary sale, and can enjoy a charitable tax deduction (if you itemize) for the full amount of the gift.

If you hold stock which is worth more today than it was when you purchased it but the dividends paid are low, you may be able to significantly increase your spendable income by using these appreciated securities to fund a life-income gift (Gift Annuity, Pooled Income Fund gift, or Charitable Remainder Trust).  Donors of life-income gifts also enjoy a tax deduction, but not for the full amount of the gift; the charitable deduction is prorated, based on the part of the gift that is considered “charitable,” and the part that returns income to you.

Please note two cautions regarding gifts of stock: 1) If securities are appreciated, they must be transferred to the church in order to preserve the capital gains advantage.  We have a sample letter you can use with your broker to make this transfer.  2) If your stock is worth less today than when you purchased it, you should instruct your broker to sell these depreciated shares, thus enabling you to declare the loss on your income tax return and then donate the proceeds to gain an income tax deduction as well.

Please help us help you. When you make a gift of stock it is very important to let our Financial Secretary, Debbie Bishop, know that this gift has been made.  Otherwise, we do not know who made the gift or when, thus making it very difficult to credit you for the gift made.

For more information about “Double Dividends” or “Taking Stock” please contact The UCC Financial Development Ministry at 800-846-6822 or Tom Grant (Board of Trustees) at 860-598-9419 or This email address is being protected from spambots. You need JavaScript enabled to view it. .