The first stock gift I ever received as a church treasurer was several shares of Coca-Cola Company stock from a wonderful member named Char. Char wasn’t a multi-millionaire. She was just like so many ordinary people that happen to own stocks, bonds, or shares of a mutual fund. You don’t need to have a Bill Gates in your church to receive a stock gift. Ordinary people make these extraordinary gifts each year. Because of Char’s example, I actually made my own stock gift a few years later to support the church’s capital campaign.
For a church, it can also seem tricky to actually receive a stock gift. I highly recommend the Dakotas United Methodist Foundation or Minnesota United Methodist Foundation. They can receive these stock gifts for a church and then cut a check for the value of the stock. In the video, I walk through the process of facilitating a stock gift as well as how to account for it.
For those donating stock, to receive the greatest tax benefit you should donate:
- Appreciated Stock: Stock that has grown in value since you bought.it. If it lost value, it’s better to sell it first and then donate the cash.
- Long-term Stock: Stock held for more than a year gets the most bang for your buck. If it’s been held for less than a year, you only get partial credit for the donation.
- Dakotas UMF Stock Gift Instructions: https://www.dakotasumc.org/media/files/FOUNDATION/StockTransferForm_2021.pdf
- Minnesota UMF Stock Gift Instructions: https://www.mnumf.org/files/mnumf/mn_stock_transfer_forms_21.pdf
- Forbes Article on Stock Giving: https://www.forbes.com/sites/brucebrumberg/2020/12/01/stock-donations-7-essentials-to-maximize-your-charitable-giving–tax-deduction/?sh=656d669b53c0