Year-end Giving Considerations

November, 2011

Appreciated Stock or Other Property

Over the last 2 ½ years, the stock market has been up . . . and down . . . but mostly up (at least, at the moment) . . . If you own stocks or mutual funds that have increased in value (and that you were planning to sell), you can give these securities to your church or favorite ministry and you may save taxes. 

Some families have recently taken advantage of this by giving stock or mutual funds, rather than writing checks, for their tithe or other giving.  Here’s how it has worked for one person . . .

● At least once a year, he calls his investment advisor and asks: Do I own any stock or mutual funds that you think I should sell? Have they increased in value?

● He asks his advisor to transfer to the Foundation an amount of stock or mutual funds equal in value to the amount of money that he plans to give in the upcoming year. The Foundation sells the stock tax-free.

● He then asks the Foundation to write checks to the church and other ministries, each check in the amount that he would have given anyway.

So what’s the catch? . . . There isn’t one. He has avoided paying income taxes on the gains in the stock and has been able to accomplish his regular support of his church, missionary families, other ministries, etc.

In most cases, your financial advisor can easily handle the gift once he or she has the necessary information from the church, ministry or Westminster Foundation.

Westminster Foundation also accepts other forms of appreciated property – for example, land or other real estate. You may save taxes by doing this as well. If you would like to know more, please contact Edwin Barnes, Jr. at 803-366-8880 or ebarnes@westminsterfoundation.com.

Direct Gift from an IRA

If you are age 70 ½ or older, you may be able to make a charitable gift to your church or favorite ministry directly from your individual retirement account (IRA) without negative tax consequences (and possibly with some tax savings).

If you would like more information about this opportunity, please contact Edwin Barnes, Jr. at 803-366-8880 or ebarnes@westminsterfoundation.com.

You will also need to contact your IRA administrator.  Please note that some IRA administrators require two or three weeks advance notice.