GIFTS OF STOCKS AND BONDS

Stocks, bonds, and mutual funds are great ways to give without incurring capital gains on appreciated assets. Gifting appreciated assets results in a double tax benefit: 1) If you’ve held the asset longer than one year (long-term capital gain property), you avoid paying capital gains tax on the appreciated asset; 2) The gifted amount is an eligible tax deduction and will be listed on your annual church giving statement.

For example, if you purchased stock for $1,000 several years ago and its value is now $10,000, rather than selling the stock and paying tax on the $9,000 gain, you could donate the stock directly to the church. You avoid capital gains taxes on the $9,000, receive a $10,000 charitable giving tax deduction, as well as provide the church with the full $10,000 value of the stock.