Making gifts with appreciated securities is a common practice. These can be gifts of stocks, mutual funds, or bonds that have appreciated in value.
Example: You own 200 shares of ABC stock, and you paid $10 per share several years ago. Today, those shares are worth $20 a share. If you donate your stock (worth $4,000) directly to Messiah, your charitable income tax deduction (if you itemize) is still $4,000. You will also be able to avoid the 15% Federal capital gains tax on the amount of your gain. Savings on capital gains tax is $300 ($2,000 x 15% = $300). There also will be a Missouri income tax savings. Please consult your professional advisor if you have any questions.
Once your decision has been made to make a gift of appreciated securities to Messiah, there is a process that needs to be followed:
- Be sure to advise the Business Manager at Messiah, Nathan Carlson, of your gift BEFORE your asset is transferred. This is to insure that your asset can be properly accepted upon receipt and credited to you.
- It is important that Messiah receive and have in its possession the asset(s) being given in order to obtain the full tax benefits.
- Assets you hold in a brokerage account. Your broker will have them wire transferred to Messiah’s account at Commerce Bank.
- Assets you hold in book entry form. You will need to have them transferred to Messiah’s account at Commerce Bank.
- Assets you hold in certificate form of ownership. You should contact our Commerce Bank broker and make an appointment to handle the deposit to Messiah’s account.
Shareen Beal, Senior Vice President
Commerce Brokerage Services, Inc.
1345 E. Battlefield Road
Springfield, MO 65804
Messiah’s account will be with Commerce Brokerage Services, Inc.
8000 Forsyth Blvd., Suite 1200
St. Louis, MO 63105
For information on DTC Eligible Securities