Union Church of Hinsdale maintains a brokerage account for the convenience of members who choose to fulfill their pledges by gifting shares of appreciated stock. The benefits to the member include avoiding capital gain taxes, getting a charitable deduction based on the fair market value of the stock on the day of the gift, and satisfying pledges or making special offerings without any out-of-pocket cash payments.
Q. How do I arrange a gift of stock to Union Church?
A. First, tell your broker/adviser what you want to do. Then contact Gaby Gleason, our Financial Manager, at firstname.lastname@example.org, or 630-590-6654, and let her know what company stock you are donating. She’ll then be ready for the transaction. For the actual transaction, contact our broker: Scott Bowman at Edward Jones, 930 N. York Road, Suite 214, Hinsdale, IL 60521 – Business 630.654.2490, Fax 888.889.3801, Cell 312.505.1705, TF 800.585.4098, email@example.com. He can walk you or your adviser through the process if needed. If you have any trouble with this, it is best to email Gaby, and she’ll try to help.
Q. What happens when the Church receives the stock?
A. The stock is immediately sold and the broker sends a check for the net proceeds to Union Church.
Q. How is the fair market value of the stock determined?
A. You are entitled to the average of the high and low selling prices of the stock on the day of the gift. Please note: Union Church cannot provide this for you. IRS regulations state that a receiving organization is not to assign a value to non-cash contributions. Please contact your investment advisor to determine the deduction value.
Q. What amount gets applied to my pledge?
A. There are small fees associated with any stock sale. When you donate stock, the fees slightly reduce the amount the Church receives. The gross amount before the fees is the amount that is applied to your pledge.
Q. Doesn’t this reduce the tax deduction I am entitled to?
A. You will get a copy of the trade confirmation, as well as a letter acknowledging the donation and showing how the proceeds were applied. The amount received will show up on your giving statement with the notation “x shares of ABC Stock”. Cash and non-cash charitable contributions are reported separately on your tax return, and you would enter the fair market value of the stock on the appropriate form. Please contact your tax preparer for further details, or you can obtain instructions from the IRS for Form 8283 that explain the procedure.
Another option: We are not financial planners (obviously!), but for those over age 70.5, IRA Charitable Rollover Gifts might be a good year-end giving idea too. Ask your advisor, and then contact the church.
Thank you for your generosity!