When stocks are up they’re a great year-end strategy

A few years ago, a giver in Florida named Brad read a story in NCF’s Saturday 7 about giving stock. Though he’d been generously supporting Christian ministries for years, he’d never really thought about giving appreciated securities. So he tried it.

When Brad donated appreciated stocks that he’d held for more than a year, he was able to reduce capital gains taxes. After the stock sold, the proceeds were placed in his Giving Fund (donor-advised fund), so he could recommend grants to the charities and causes he loved.

In 2019, this strategy allowed Brad to gift $100,000 more into his Giving Fund. In 2020 he did it again and was able to give even more than the first time. And in 2021, he surpassed the last year’s figure by gifting stock.

But the best part isn’t how much more he was able to put in his fund each year; it’s what he’s been able to do with it. Brad recommended a grant from his Giving Fund to Favor International, which helped their founder in Uganda, Carole Ward, pay off a property that will eventually house up to 400 girls who recently came to Christ but were living on the streets. Brad’s gift inspired others, and more money came in to help the ministry complete renovations on the building.

Before, these girls were doing whatever they could to survive, including prostitution. Now, they will have a safe home, where they will receive trauma counseling, compassionate care, and discipling.

Do you have a giving dream that could be fulfilled by gifting stock?

By donating 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 2021. If your stocks have appreciated, donating them is a great way to increase your support for the causes close to your heart.

And with the ease of donating stocks through their Giving Funds, many NCF givers have taken advantage of this smart strategy for giving.

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 most to support. The Giving Fund owns and invests the money in your Fund until you’re ready to recommend grants.
  • It’s best not to wait until the last minute: To transfer the shares to your Giving Fund, most banks and brokerage firms require a letter of instruction or letter of authorization 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.

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