Gifts of Stock

What are the benefits to gifts of stocks over gifts of cash?

When you have a stock with a large gain, you may consider donating this stock to Granite Springs Church.  The advantage is that you can take a tax deduction for the entire amount given and you have no taxable gain on the stock. For example you have 200 shares of California Widgets bought at $10 per share that over time has risen to $15 per share.  Assuming you donate 100 shares to Granite Springs, you will be able to deduct a charitable gift in the amount of $1,500 on your tax forms and the gain of $500 is also not taxable. These 100 shares just disappear from your account.  At the same time you are able to make charitable donation.  If you are in a 25% tax bracket and you have held your stock for more than one year, your $1500 donation in effect costs you $1050    (Savings of $375 from income tax deduction, and savings of $75 in long term capital gains tax).

How do I give stocks?

First, contact your broker to determine the last date they will accept a stock transfer before the end of the year.

Second,  You’ll need a form from your broker, (most likely, it can be downloaded from your broker’s web site) and fill out the form as instructed. Sign it and transfer it (fax) to your broker.

Wiring instructions for transfer of stock to Barnabas Foundation (Granite Springs broker) are below.

TDC:                                                                                  0385, E*Trade Securities, LLC

For the account of:                                                    BARNABAS FOUNDATION

Account Number:                                                      5550-3250

E-Trade Contact, if needed:                                    Marc Demmon 1-866-789-0712, Ext. 0007

When you transfer a stock to Barnabas Foundation, which uses an E-Trade account, they will sell the stock the day they receive it. Your charitable donation amount will be the average of the high and low price per share for the donated shares on the day Barnabas receive them at E*Trade Securities LLC.

Be sure to notify Cindi Riemersma or Pat Hendrikse at Barnabas Foundation (888 448-3040) when you are sending the shares so they can be on the lookout for them.

After the transaction is completed, Barnabas will acknowledge receipt of your contribution and its values for IRS reporting purposes, as well as the net amount which will be deposited into Granite Springs’ account.

If you have any questions regarding these instructions, please do not hesitate to contact Cindi Riemersma, Client Services Administrator at (888)448-3040.