Investment Giving

Giving appreciated STOCK, ETFS, OR MUTUAL FUNDS to Discovery Baptist Church

Because we believe in being good stewards of what God has entrusted to us, we have provided a tax-smart way of giving to Discovery Baptist Church. If you own appreciated stock, there are potential advantages in giving stock rather than cash. By giving appreciated stock as a charitable gift, you legally avoid paying capital gains tax on the increased value of the stock. Because you are giving to a charitable organization, your gift is deductible for the fair market value of the stock at the time it was given when calculating your taxable income.

You can donate appreciated STOCK, ETFS, OR MUTUAL FUNDS to the church. Ask your financial/tax advisor if this is a viable option for you. Typically, long-term capital gains tax rates are about 15%. Short-term capital gains tax for the highest income bracket could be as high as 37%. By giving in this way, you reduce your payable tax and the church receives these gifts with no tax obligation.

Before donating, it is wise to discuss your plan with your financial/tax adviser to maximize the impact of your gift in a tax-advantaged way. There are a few general guidelines that you should bear in mind. You can receive a tax deduction on stock donations up to 30% of your income. You might also be thinking about transferring a losing stock to charity. In this case, it is better to sell the stock and give the funds directly to your church. This allows you to take the capital loss and still deduct the full cash amount from your taxes. As with all charitable contributions, make sure to itemize your deduction come tax season. Only itemized deductions can be deducted from your taxes.

Giving appreciated stock is a win-win method of structuring your giving:

  1. Discovery Baptist Church receives a gift as good as cash that will be used for God’s work.

  2. Donors receive a charitable tax deduction equal to the fair market value of the stock and legally avoid capital gains tax on the appreciated value of the stock.

CLICK HERE to download an information sheet and application form to discuss with your financial adviser.