Cross
Donating Stock Just Got Easier

The West Ohio Conference Council on Development office has received several calls recently asking about stock donation. If you are considering a charitable contribution, let us help. Gifting appreciated stock is one of the most effective means of tax savings available.

The Benefits of Gifting Appreciated Stock

  1. The satisfaction of knowing your money is invested in a cause important to you.

  2. Capital gains taxes on the stock are avoided.

  3. You will be eligible to receive an income tax charitable deduction for the full fair-market-value of the stock at the time of the gift.

To qualify for these special tax advantages, the security must have been held for at least one year. A gift of stock in certificate form should be postmarked by December 31 or your financial advisor can arrange for a year-end gift of stock from your account.

Your gift of appreciated stock is fully deductible up to 30% of your adjusted gross income. For example, if your adjusted gross income is $100,000, up to $30,000 of long-term appreciated stock and other capital gain property may generally be deducted, although high-income donors may be subject to a partial phase-out of itemized deductions. Any excess can generally be carried forward and deducted over as many as five subsequent years.

How Giving Away $10,000 in Stock can Benefit You

Look at the tax savings of donating securities versus a cash gift. The chart below assumes you wish to donate shares of stock worth $10,000 that you purchased for $2,000 several years ago.

 

Donate appreciated security outright

Donate $10,000 cash

Sell securities and donate cash

Charitable Deduction

$10,000

$10,000

$10,000

Tax Savings (35% rate)

$3,500

$3,500

$3,500

Capital Gains tax paid (15% rate on $8,000 gain)

$1,200 saved

N/A

$1,200 paid

Net tax savings

$4,700

$3,500

$2,300


Contact the Council on Development Office and we will provide fee-free instructions. You may reach us at Stan Ling sling [at] wocumc.org or Cat Lyle at clyle [at] wocumc.org or by phone at 614-844-6200 Ext. 222.