Case Study
The Win-Win Benefit of
Giving Appreciated Stock
Mark and Sherri purchased 1,000 shares of stock for $20 per share. Over the past several years, the value has appreciated by $30 per share to a total value of $50 per share. Therefore, their original investment has grown by $30,000 to a total worth $50,000. When they decide to sell the stock, they'll have to pay federal and state taxes on the long-term capital gain of $30,000.
Rather than selling the stock, Mark and Sherri decide to give it to Cherry Hills Community Church. It is important to give the actual stock—not sell the stock first and give the proceeds. Selling the stock first and giving the proceeds would trigger the capital gains tax. As a non-profit organization, Cherry Hills can sell the stock and use 100% of the proceeds for ministry.
To make their gift of stock, Mark and Sherri work with their broker and transfer the stock directly to the church's brokerage account.
The win-win result of giving appreciated stock is:
Cherry Hills Community Church receives a gift as good as cash that will be used for God’s work. And the donors receive a charitable tax deduction equal to the fair market value of the stock, and they also avoid capital gains tax on the appreciated value of the stock.
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Gifts of Stock or Appreciated Assets
Since we believe in being good stewards of what God has entrusted to us, we encourage you to thoughtfully consider the advantages of these giving options.
Appreciated Stock or Securities
Making a gift from appreciated stock or mutual funds creates a win-win situation for both you and the church. You'll receive a charitable income tax deduction for the full fair market value of the stock or mutual fund. Long-term appreciated assets have a fair market value greater than their cost, since they were generally purchased more than 12 months earlier. If you are making a gift of stock or securities, please let us know so that we can verify the transfer and properly record your donation.
Current Gifts of Assets
In general people have about 9% of their money in accessible cash flow and 91% invested in property or assets. When it comes to charitable giving, most people draw from the 9%—but there are also strategic opportunities to give from the 91% in order to create benefit for your family and for ministries you support.
We have partnered with Fulcrum Philanthropy Systems and PhilanthroCorp to provide information regarding planned giving options. Click here for more details.
Contact
Dutch Franz
Executive Pastor
303.325.8210
