Giving to Immanuel, Part 2: Appreciated Securities
This is one of three articles about how you can contribute financially to Immanuel Highlands. This article covers gifts of appreciated securities. The other articles discuss cash gifts and contributions directly from an IRA.
Instead of selling securities like stocks, bonds, and mutual funds and donating the after-tax proceeds to Immanuel, consider donating these assets directly to the church. The tax savings from gifts of appreciated property are significant when compared to cash gifts of the same value.
If you give the church an appreciated asset that you’ve owned for more than one year, it can subsequently be sold by the church and you can avoid capital gains taxes on the appreciation. Because the church does not pay capital gains taxes, the appreciation won’t be taxed when the church sells the asset. It is important to transfer the appreciated property to the church before selling it to avoid the capital gains tax. If the value of the asset has declined during your ownership, you can sell the asset first and give the proceeds to the church. By doing so, you might be able to realize a capital loss and potential tax deduction.
In addition, you are usually allowed an income tax charitable deduction for the fair market value of the donated asset at the time of the gift. Charitable contributions can reduce your tax bill only if you itemize your deductions. Those who take the standard deduction cannot deduct their charitable contributions, but legislation enacted in late 2020 extends through 2021 some pandemic-related tax benefits associated with charitable donations, making 2021 an advantageous year for contributions.
Whether as a gift or to meet a pledge commitment, it is easy to transfer securities held at a financial institution to Immanuel. To complete the transfer, provide your instructions and this information to the institution that holds the securities:
Receiving firm: Manufacturers & Traders Trust Company
Receiving firm DTC number: 0990
Account name: Immanuel Church Highlands
Account number: 131267-000
Please note that Immanuel Highlands does not render legal or tax advice. For advice and assistance in specific cases, you should obtain the services of an accountant, attorney, or other professional advisor.