Giving Securities or other Appreciated Assets

Giving stocks, bonds and other assets that have increased in value from the time you acquired them is a great way to make a charitable gift.  Not only do you avoid paying capital gains taxes on the increase in value, but in most cases you qualify for a charitable gift income tax deduction equal to the present fair market value of the asset.

    How it Works

    
  • You would transfer the securities to the UM Foundation for the benefit of the local church or agency you wish to support.
  • We would sell your securities and use the proceeds for the purpose(s) you designated.
  • You receive a charitable income-tax deduction for the fair market value of the securities. (Fair market value is determined as of the day the securities reach our account if transferred electronically or the postmark date if you mail them.  Your gift value is the average of the high and the low prices for the securities on that date)

Important Tip: Don't sell the stock first.  Even though you give us the proceeds as the IRS will impose capital gains tax on your sale, wiping out the benefits of this arrangements.

Assuming
35% Income
Tax Bracket		 Option A
Give
$10,000
in Cash		 Option B
Sell
Securities
& Give Cash		 Option C
Give
Securities
Outright
 Gift Value $10,000 $10,000 $10,000
 Ordinary
  income tax
  savings 		$3,500 $3,500 $3,500
 Capital gains
  tax saved or
  paid, assuming
  15%  tax rate 		N/A $1,200
paid		 $1,200
saved
 Net tax
  savings		 $3,500 $2,300 $4,700


Benefits

  • You pay no capital gains tax on the securities you donate.
  • You receive an immediate income-tax deduction for the fair market value of the securities.
  • You can direct your gift to a specific United Methodist ministry.
  • You can leverage a larger donation than you could make with cash by "buying low and giving high."

To learn more about giving securities or other appreciated assets email us at info@umfwv.org or call us toll free 1-800-788-3746 ext. 45.
We will gladly assist you and your financial advisor through the process. 


The Foundation does not give legal advise or tax advice. 
Always consult with your own advisors before deciding which gift works best for your circumstances.