Gifts of Appreciated Stock
Christian Churches United is blessed by many individuals, couples and families that generously support this work. Prayer and financial support are key to our work with those facing homelessness, poverty and incarceration. Most people give to CCU through the traditional “check or cash” method of making a gift. And for those gifts we are incredibly grateful!
Yet others have discovered another means for giving, which can benefit both CCU and you...the giving of appreciated stocks. In many cases, capital gains tax can be avoided by gifting the stock itself. Here’s how it can work.
Example: Sharon and James bought 100 shares of stock in a corporation in 2008 costing them $1,000. Now the stock is worth $5,000. Sharon and James have decided to give a gift to CCU totaling $5,000 this year. Normally they write a check, but this year, after talking to their financial advisor, they are considering a gift of stock directly to ABC. Here are their options:
|Assuming 35% Income Tax Bracket||Option #1: Give $5,000 Outright||Option #2: Sell Stock, Then Give Cash||Option #3: Give the Stock to CCU|
|Amount CCU Receives||$5,000||$5,000||$5,000|
|Ordinary Income Tax Savings||$1,650||$1,650||$1,650|
|15% Capital Gains Tax Paid of Saved||N/A||$600 Paid||$600 Saved|
|Net Tax Savings||$1,650||$1,050||$2,250|
A significant tax savings is available to Sharon and James when they give their appreciated stock directly to CCU. If you want to make this type of gift, talk to your financial advisor, then contact Steve Schwartz, Director of Development, at (717) 230-9550 or firstname.lastname@example.org for the information needed to make the stock transfer. CCU is not engaged in rendering legal or tax service, so we recommend you contact your professional legal or tax advisor when considering this type of gift.
The official registration and financial information of Christian Churches United of the Tri-County Area may be obtained from the Pennsylvania Department of State by calling toll free, within Pennsylvania, (800) 732-0999. Registration does not imply endorsement.