What’s the advantage of donating appreciated assets through The Cru Foundation?
Example: Stock purchased at $2,000 —
Valued today at $20,000 — Gain: $18,000
• Donate stock through TCF = $20,000 for ministry
No capital gains tax on charitable donation of stock
• Sell the stock and donate proceeds = $15,240 for ministry
$20,000 – $4,760 in capital gains tax*
You also receive a charitable giving tax deduction for the full value of the appreciated stock!
*If stock is held for more than one year and donor is in highest tax bracket
To make the greatest Kingdom impact with your charitable giving and minimize your own tax burden, donation of appreciated securities, including stocks or bonds, is a strategic option — the graphic shows you how it works.
This is also a timely option — because the market is up today, positioning you to leverage your contribution for maximum impact. But we don’t know how long this strong market will remain, so now is a great time to take advantage of it.
What are the benefits of donation appreciated property, stocks and bonds?
- You may avoid paying capital gains tax on the sale of appreciated stock.
- You will receive a charitable income tax deduction.
- And your gift will further the mission of the Cru ministries you love.
You can make your donation easily through electronic transfer. Just contact us for instructions on how this works. And keep in mind, there are special rules for valuing a gift of stock. The value of a charitable gift of stock is determined by taking the mean between the high and low stock price on the date of the gift. Mutual fund shares are valued using the closing price for the fund on the date of the gift.
Either way, you stand to benefit from minimizing taxes, and the ministry benefits because they receive a greater donation than wouldn’t be possible if you sold the stock and donated the proceeds.
One way we can make this process even easier and more convenient for you is through the establishment of a Great Commission Fund — this is our version of the giving vehicle you may have heard called a Donor Advised Fund.
When you donate long-term appreciated stock to your Great Commission Fund, you receive an income tax deduction and shelter the stock from capital gains taxes — and more money goes to ministry. This is a wonderful way to dispose of stocks you’re ready to sell.
But you may be reluctant about donating your “star performers” — wanting to donate cash instead. With the Great Commission Fund, there’s a better option:
Donate the appreciated stocks, so you avoid the extra taxes, and simultaneously use the cash you would have donated to buy the same stocks.
You’re in an even better position now because you own the identical number of the advantageous stocks, but at a higher cost basis, which can reduce the taxes on a future sale. You have more freedom to be generous, your tax savings are greater, and you still own the rapidly appreciating stock.
You can send stock directly to your Great Commission Fund at any time — enabling you to capture gains in a rising market.
And if minimizing publicity is important to you, your Great Commission Fund can provide anonymity (which may not be possible when you give stock directly to a ministry).
For more information about donation of appreciated stocks or establishing a Great Commission Fund, contact us today.
And thank you for building God’s Kingdom through your support of Cru ministries!
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