Investments

Gifts of Stocks, Bonds, Mutual Funds or Real Estate

Gifts of securities or real estate are a very efficient means of making a donation.

If the asset is worth more than you paid for it, you receive a charitable deduction for the total value of the asset, even though that is more than you paid for it. In the case of stocks, bonds and mutual funds, the church can sell the security from its own brokerage account and put the full value of the security to work for Kingdom purposes.

Gifts of securities
If you were to sell the security in your own account you would pay a capital gain first, and then make a smaller gift to the church. You can maximize your gift by transferring the shares to the church rather than selling first and giving the proceeds.

Gifts of real estate
A gift of real estate is a similar situation to securities. If the value of the property is more than your cost basis, then giving the property to the church and having the church sell it makes the gift larger. If you were to sell the property first, you would pay a capital gain then make a smaller gift to the church.

Finally, if assets are worth less now than what you paid for them, it is better to sell the gift asset yourself since there is no gain to pay taxes on. You may be able to take a loss against other income.

Questions? Contact Pastor Brad Brestel
or the church finance office, 483-6512.

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