Publicly traded United States stocks and bonds

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Giving a gift to The Mother Church using appreciated securities may provide an additional tax benefit for those donors who give appreciated securities that they have owned more than one year

  • They are entitled to income tax deductions, just as with gifts of cash, for the current fair market value of their securities – not just what they paid originally.
  • For outright gifts, they save again by avoiding the capital gains taxes, of 15% or 20% (plus 3.8% net investment income tax in some cases), they would have owed if they sold the securities, and for planned gifts the capital gain is spread over a certain portion of the lifetime of the gift.
  • Gifts of appreciated securities to fund a Pooled Income Fund gift avoid capital gains taxes entirely.

Donors receive, in effect, a deduction based on an untaxed profit. Stock gifts are deductible up to 30% of your adjusted gross income, with a five-year carryover for any excess deductions. These dual tax savings often enable donors to increase the size of their gifts, and are available for contributions of:

  • common and preferred stock
  • corporate bonds
  • mutual funds

Illustration of potential tax benefits from gifts of stock that has doubled in value:

   Tax Bracket 25% 28% 33% 35% 39.6%
   Current Value of Stock $1,000 $5,000 $1,000 $5,000 $1,000 $5,000 $1,000 $5,000 $1,000 $5,000
   Income Tax Savings $250 $1,250 $280 $1,400 $330 $1,650 $350 $1,750 $396 $1,980
   Capital Gains Tax Avoided 75 375 75 375 94* 470* 94* 470* 119* 595**
   Total Tax Savings 325 1,625 355 1,775 424 2,120 444 2,220 515 2,575

 

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Planning considerations

Publicly traded securities may be one of the better assets to use in making outright gifts or establishing planned gifts for The Mother Church.

Stock Gift

Gifts of Publicly Traded United States stock that you have owned for more than a year, and that have grown in value above what you originally paid for them, make effective gifts.

How to proceed

If you are interested in making a gift of securities, we would be pleased to assist you and answer your questions.