Gifts of Stock (or other assets)


The gift of an asset, often common stock or mutual fund shares, is a valuable way to make a contribution to a church. There are great tax saving benefits by giving stock as a charitable gift. It allows you to get the tax deduction of the whole stock gift without paying tax on it. You receive tax benefits based on the value of the asset(s). Suppose Jerry in this example had 300 shares of XYZ Corporation that he purchased at $15.00 a share some years ago. The current value in today's market is $36 a share. If he sold the stock in the market, he would have a taxable, long-term capital gain on the difference between his cost and what he would receive from the sale ($36 minus $15 = $21 capital gain per share. 300 shares X $21.00 = $6,300 in capital gains). Jerry could sell the stock, pay the tax on the capital gain, and either keep or donate the proceeds. If, instead of selling the stock, he gave the 300 shares to his church, he would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) as a charitable gift. By donating the stock, the church would receive the whole value of the stock versus what the portion it would receive if Jerry first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, Jerry would receive a greater tax deduction by giving the stock directly to the church and avoid the capital gain tax. For more information about gifts of appreciated assets, please contact our office so we can respond to your specific needs.

We have an account at Central Discount Stockbrokers at 223-4164. They are located at 4025 Automation Way, Bldg D, Suite 1. Please call Central Discount Stockbrokers and make the arrangements with them to transfer your stock to "Summitview Community Church of Fort Collins". They will transfer the stock to our account and call us when the transfer has been made. They also will let us know who donated the stock, so then we can get a receipt sent to you. The donor will receive a receipt from Summitview that states how many shares were given, the company stock name, and the date the stock was given - not $ amount). The donor should receive a receipt from the stock transfer transaction that will list the transfer value of the stock. Since the value of the stock may change between the time of transfer and the time it is sold, the IRS does not want the church to try to state the dollar amount value of the stock gift on our receipt to the donor. Donating stock is a noncash charitable contribution and is subject to certain IRS reporting requirements. A donor who gives publicly traded stock valued at more than $500 must complete Section A, Part 1, of IRS Form 8283 (Noncash Charitable Contributions). Please feel free to call the office if you have any questions.