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Stock Gift Donation
For example, if you bought a stock 5 years ago for $1,000 and today’s value is $1,500, the gain would be $500. If you sold the stock, and then gifted the proceeds to Aldersgate, you would report $500 of gain, and claim a $1,500 charitable deduction. However, if you gift the stock directly to Aldersgate, you do not report any gain, but are still entitled to the full $1,500 deduction*. There are limitations on the amounts you can claim each year as a charitable deduction, and there are different limits on cash gifts and gifts of appreciated property, such as stock*. *Please consult your tax advisor regarding this information as it relates to your personal circumstances. If you wish to give a tradable equity such as common stock or mutual fund to Aldersgate church, the following is the recommended process. Note: If you have a paper stock certificate that you wish to donate, please contact the Financial Secretary at Aldersgate for special instructions. 1. Contact the financial institution or brokerage firm that is holding your stock or mutual funds. Inform them that you wish to give a gift of stock or mutual fund to your church. They will most likely ask you to fill out a form provided by the receiving brokerage firm (see #2 below). They will give you direction as to where to mail or fax the form. 2. The Iowa United Methodist Foundation is designated to receive stock and mutual fund gifts on behalf of Aldersgate. Contact the Foundation and ask for Teri Miller at 515-974-8929 or Kevin Gowdy at 515-974-8928. Let them know you are giving stock or mutual funds to Aldersgate church. Provide them with the details of your gift. The Foundation can send you a generic form to fill out to mail or fax to your brokerage firm, or you can use a copy of the Foundation’s form (click here). 3. When the stock or mutual fund shares transfer to the Iowa United Methodist Foundation account, they will cut a check to Aldersgate for the average high and low price of the stock or mutual fund for the day received. The Foundation will mail you a thank you letter. Keep this letter for tax purposes. 4. When Aldersgate receives the check from the Iowa United Methodist Foundation, they will contact you as to where you wish your funds to go to (i.e., budget, building fund, etc.). 5. Aldersgate will send you a thank you letter similar to the Foundation’s letter. We will enter a $0 entry on your church statement along with a description of the stock or mutual fund given. The IRS does not allow the church to show the amount the stock was worth on your church statement since this is not a cash transaction. However, you can use the thank you gift letters as documentation for any potential tax deduction. Should you have any question on this process, please contact the Aldersgate Financial Secretaries, currently Joan and Bert Hitzel. |
