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Stocks and Mutual Funds
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A Tax-Saving Way to Benefit from Growing Assets
Securities and mutual funds that have grown in value and been held for more than a year are great options when making a gift to our parish. Donating these types of assets not only helps support our mission but also offers benefits for you.
When you donate appreciated securities or mutual funds, you can reduce or even avoid federal capital gains taxes on the transfer. You may also qualify for a federal income tax deduction based on the value of the securities at the time of the donation.
When you donate securities to your parish, you can enjoy the same income tax savings as if you made a cash donation, plus the added advantage of avoiding capital gains taxes, which can be as high as 20 percent.
For more information, visit the website https://plannedgiving.archny.org/appreciated-securities
Stocks
In the Archdiocese of New York, the procedure for donating stocks to a parish typically involves the following steps:- Contact the Parish or Archdiocese: Before making a stock donation, reach out to the parish office or the Archdiocese’s Planned Giving Office (or Development Office maybe they changed the name - verify) to notify them of your intent to donate. They will provide the necessary forms and instructions for making the transfer.
- Transfer the Stocks: The parish or Archdiocese will provide you with their brokerage account information. You will need to contact your broker or financial institution to initiate the transfer of the stocks directly to the parish’s account. Be sure to specify that the donation is to the parish and provide any details required to ensure it is properly credited.
- Tax Information: Once the stocks are transferred, the parish will provide you with an acknowledgment letter for tax purposes. The donation is typically valued based on the average of the high and low prices of the stock on the date of the transfer.
- Consult a Financial Advisor: It’s recommended to consult with your financial advisor or tax professional to understand the tax benefits of donating stocks, such as avoiding capital gains tax and possibly receiving a charitable deduction.
- Notification of the Gift: After the transfer is complete, the parish will send a receipt for the stock donation. This serves as confirmation for your tax records. If the donation is part of a larger campaign or endowment, additional instructions may apply.
IRA Gift - A Special Opportunity for Those 70½ Years Old and Older
You can donate any amount (up to $105,000) this year from your IRA directly to a qualified charity, like your parish, without paying income taxes on the gift. Donations of $105,000 or less are eligible for this benefit, so you can feel good knowing you're making a positive impact at your parish. This popular giving option is known as the IRA charitable rollover, but it's also called a qualified charitable distribution (QCD).
Why Consider This Gift?
Immediate Impact: Your donation will be put to use right away, allowing you to see the difference it makes.
Tax Benefits: You won't pay income taxes on the gift, and it doesn't generate taxable income or a tax deduction. This is beneficial even if you don't itemize your deductions.
Minimum Distributions: If you're required to take minimum distributions, your gift can satisfy all or part of this obligation.
Income Reduction: Since the gift doesn't count as income, it can lower your annual income level, potentially reducing your Medicare premiums and the amount of Social Security subject to tax.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
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