Transferring Stock to the Church

INTRODUCTION: If your are going to give to the church for any reason, consider giving appreciated securities instead of cash.  If you do it right, you will avoid paying capital gains tax on the securities you might have otherwise sold for a profit.  While long term capital gains taxes have been reduced considerably, it is still worth considering. Giving Securities that have lost value is of no advantage from the income tax standpoint.

To benefit, you must transfer the security to the church.  Then the church will sell it and receive the proceeds.  There are two options to consider.  If you own a stock certificate, you mail the unsigned certificate to the stockbroker listed below along with a signed copy of a “stock or bond power”. This is a more secure way to handle the certificate transfer and is preferred to signing the back of the certificate and mailing it.

If your security is held by your broker, you can have the ownership transferred electronically to the church’s broker.  It is faster than writing to the company or its agent and having XXX shares issued in certificate form to you.  By electronically transferring the shares, you avoid the time lag and some of the uncertainty as to the security’s value on the date the stock is actually transferred.

DETAILS: Call Elaine Young for details.

IMPORTANT: Call Elaine Young, Treasurer or the church office and advise them that you are transferring stock to the church.  Elaine needs to alert the church’s broker that you are making a gift and that the securities are to be sold immediately upon receipt.

MISCELLANEOUS: To meet your pledged amount as closely as possible, anticipate the church having to pay a sales commission.

Transferring stock to the church also helps you if you are uncertain of your cost of the stock (inherited, dividends reinvested over the years, lost purchase confirmation slip, etc.). You also avoid Schedule D.