Investing with Faith / Jolinda Moore

Gifts of stock can have a big impact as a planned giving vehicle

One-third of adults hold stock and mutual fund investments outside their retirement accounts. With high growth in the stock market in recent years, appreciated stock, held for more than one year, can be the ideal choice for individuals who want their charitable gifts to make the biggest impact for the lowest possible cost.

Donors seeking to make an immediate impact in ministry are using this planned giving vehicle to leverage the tax benefits of such a gift. Here is an example:

Suppose Ann gives us 100 shares of stock—purchased 10 years ago for $1,000—with a current fair market value of $5,000. Today, Ann can deduct the full $5,000 on this year’s income tax return if she itemizes. The $4,000 capital gain is not taxed, even though the gain is quadruple the purchase price. Avoiding capital gains tax and receiving an income tax deduction makes it possible to give stock at the lowest possible after-tax cost.

We have seen such contributions fund the annual tithe to one’s parish, provide support for a capital project and used as a vehicle by which one can increase the support of their favorite ministry program.

As a benefit to all parishes, schools and ministry areas, the archdiocesan Office of Stewardship and Development processes all gifts of stock, passing the total gift received along to the designated beneficiary. Donors should make the office aware of such gifts by visiting www.archindy.org/CCF and completing the secure online form available under the tab “Donate Stock.” The completed link serves as a donor’s letter of intent, and the page also provides all brokerage firm details that can be shared with the donor’s brokerage firm.

It is important to note that the timing of transfers can vary depending on the policies of individual brokerage firms. Please keep this in mind when seeking to make a gift before the tax year cut-off of Dec. 31.

As always, you are advised to discuss your specific situation with your tax advisor to ensure your personal financial goals are being met.

Questions and concerns regarding gifts of stock can be directed to ccf@archindy.org or by calling 317-236-1482. Please reach out in advance of sending a transfer if you have questions on whether the ministry you seek to fund is considered a parish, school or agency of the Archdiocese of Indianapolis.
 

(Jolinda Moore is executive director of the archdiocesan Office of Stewardship and Development and the Catholic Community Foundation [CCF]. Tax or legal information provided herein is not intended as tax or legal advice. Always consult with your legal, tax or financial advisors before implementing any gift plan. If you would like to learn more about including your parish in your estate plans, please contact us any time. We exist to exclusively serve you and your parish in planned giving. For more information on the CCF, visit e-mail ccf@archindy.org., or call 317-236-1482.) †