Givers from California to Florida and in the northeast know something about giving at year-end: There are giving dreams God has given that can be fulfilled efficiently by giving stock.
A giver in Florida had never thought about giving stock, but when he did, he was able to increase his giving to get hurting kids off the streets and to bring the gospel to many people in a remote part of the world.
A giver on the east coast found he could give stocks almost as easily as he could give cash, and it was more efficient. Now he supports ministries helping people who are just of prison to find new careers. Another giver family was able to keep giving even after stepping out into a missional calling when they remembered they could give stock instead of cash.
Do you have a giving dream that could be fulfilled by gifting stock?
There are two important things to remember when giving stock to charity:
- Give them after a year: To get the most out of this strategy, you must have held the stock for more than one year. With stocks owned long-term, you can potentially deduct the fair market value of the donation from your taxes, which can mean more for charity.
- Give your winners: When you donate appreciated securities, the capital gains taxes saved could mean more for ministry, and you can claim the value of the donation as a charitable deduction for 2023. If your stocks have appreciated, donating them is a great way to increase your support for the causes close to your heart. Though stocks that have not appreciated aren’t good candidates for this strategy, you may still choose to sell them and give from the proceeds.
If donating stock sounds like a good option for you, keep these things in mind:
You can give now but decide later which grantees to recommend: One of the beauties of gifting stock to a Giving Fund is that you can transfer shares now, before year-end. You make a gift to a charity (NCF), and we issue a charitable contribution receipt. Then, you can claim any qualifying deduction based on this year’s gift, but you can take time choosing the charities you want to support. The Giving Fund owns and invests the money in your fund until you’re ready to recommend grants.
To transfer the shares to your Giving Fund, most banks and brokerage firms require a letter of instruction or letter of authorization. Mutual funds can also be given, and a mutual fund company may have a special form. So it’s a good idea to start the process as soon as possible, so the transfer has plenty of time to be completed.
Learn more about stock giving with NCF in the video below.
