A Tax-Wise Way to Advance ICCF’s Mission
There are significant tax advantages when giving gifts of publicly traded stock or other securities which have increased in value (appreciated) and which you have held for more than one year since the date of purchase. By giving a gift of appreciated stock, you can:
- take a charitable income tax deduction for the full current market value of the stock;
- avoid paying capital gains tax on the increase in value of donated stock; and
- gain the satisfaction of furthering ICCF’s mission in a way that maximizes the impact of your stewardship.
“We choose gifts of appreciated stock in order to increase the impact of our contributions. We are able to avoid tax implications from selling the stock and can provide about 15% more over gifting it as cash.”
Brian & Kaitlyn Turner
One Example of an Appreciated Stock Gift
John and Mary Smith hold shares of publicly traded stock with a market value of $10,000, which they bought for $3,000 a number of years ago. If they transfer the stock to ICCF before the stock is sold, they will be able to claim a charitable income tax deduction on this year’s tax return for the full $10,000, and they will not be required to pay capital gains tax on the $7,000 increase in value.
This savings in income and capital gains taxes increases the amount that John and Mary can give compared to their after-tax proceeds if they had first sold their appreciated stock.
How to Give a Gift of Stock and Other Securities
ICCF partners with Barnabas Foundation to receive gifts of publicly traded stock and securities. Your financial advisor/broker can electronically transfer the securities to Barnabas Foundation, using the E*Trade information below.
For a fillable form with instructions and all of the information needed to make a gift of securities/stock to ICCF, click here. It’s important for you or your broker to complete this information and forward it to Barnabas Foundation because stock donations electronically transferred from your broker to Barnabas Foundation typically arrive without information about you the donor or ICCF as the intended recipient.
Information for Electronic Stock Transfer to Inner City Christian Federation (ICCF)
|Name of Receiving Firm:||E*Trade Securities, LLC|
|Receiving Account Name:||Barnabas Foundation, EIN #36-2904503 (NOTE: do not include Inner City Christian Federation, only list Barnabas Foundation)|
|E*Trade Contact:||firstname.lastname@example.org or 1-800-503-9260|
If you or your investment professional have specific questions about the process of giving stock or other securities to ICCF via our partnership with Barnabas Foundation, you are welcome to contact Barnabas Foundation’s Client Services Administrator, Cindi Riemersma, at criem@BarnabasFoundation.com or 888.448.3040.
To learn more about scheduling a complimentary, confidential conversation with a Barnabas Foundation Financial Planner, click here.
Please note that it is not a good idea to give a gift of stock if the current value of the stock is less than what you paid for it. If that’s the case, it would be better to sell the stock, recognize the loss you incurred on your income tax return and make a cash gift with the proceeds.