Remembering Deermeadows: Legacy Giving - Part 3

June 13, 2019

BY:  Ned Hamil, Chairman Deermeadows Baptist Permanent Endowment Fund Committee

Part 3

This is Part 3 in a 4-part series presenting  ideas you may want to consider in leaving a charitable gift to the Deermeadows Baptist Church Permanent Endowment Fund.

Those of us fortunate enough to be living in or near retirement often worry about having enough money to live out our days in relative financial security.  The following discussion addresses situations where we have reason to believe we have sufficient money for those purposes and a potential residual estate.  Some changes in the 2018 tax law work to our favor.

Contribute Appreciated Stock to the Endowment Fund

A charitable gift of stock with significant gains during your holding period may also be used to avoid taxes on stocks that have materially appreciated. They make great gifts to your church or other charities. The basis for your stock (what you paid for it) plus any gains is considered deductible in the year you gift them to the charity. This can be accomplished by transferring (gifting) the stock to the church endowment fund. Darlene Papa, church financial secretary, can assist you with this transaction. In this example you get a tax deduction for the appreciated value of the stock ($15,000) in the year that you make the gift and you do not pay any taxes on the original cost or the appreciation over the years you owned the stock

Example: You made a great investment in AJAX Inc. in 2008. You bought 1,000 share of AJAX for $10 per share for a total of $10,000 (your basis). Over the next ten (10) year period AJAX has appreciated to a value of $15 per share for a value of $15,000. You may gift the entire $15,000 or any part thereof to the Endowment fund and incur no taxes. If you do it while you are living you receive a current year tax deduction of $15,000 of the amount you gift.

See your tax, legal or investment professional for advice to see if this is a good alternative for you

Disclaimer: This information is not to be considered as financial or investment advice. One should contact their CPA, Financial Advisor or attorney to determine if any of the techniques are appropriate for your individual situation. You may feel free to contact a member of the Deermeadows Endowment Committee for general information about the topics discussed.

CATEGORIES: Legacy Giving