spacer

How to Give Stock to Your Church

Many people have discovered the advantages of making a gift of appreciated stock to their church. By making such a gift, you escape the capital gains tax on the appreciation, and you have the benefit of a charitable deduction on your income tax of the current market value of the stock. Frequently donors ask the Foundation how they should proceed to complete such a gift. The following is an outline of the steps involved:

If you have your stock held electronically by your broker:

1. Write a Letter of Instruction to the United Methodist Foundation (223 Fourth Avenue, Suite 707, Pittsburgh, PA 15222) stating that you have stock held electronically that you wish to donate for the benefit of your church and that you would like the Foundation to sell that stock for you.

2. The Foundation will provide you with a phone number and contact name of their broker at UBS who will assist your broker with making the transfer to the Foundation. The transfer will be made to the Foundation brokerage account for the benefit of your church. The Foundation will direct its broker to sell the stock and transfer the funds from the sale to your church.

3. Once the stock transfer is completed, your income tax deduction will be the average between the high and low price of the stock on the date that the stock actually was received into the account of the Foundation. A letter of confirmation from the United Methodist Foundation will be sent to you containing this information.

If you have a paper stock certificate:

1. Write a Letter of Instruction to the United Methodist Foundation (223 Fourth Avenue, Suite 707, Pittsburgh, PA 15222) stating that you have stock in certificate form you wish to donate for the benefit of your church and that you would like the Foundation to sell that stock for you.

2. The Foundation office will send you a sample Letter of Instruction and Stock Power which you will need to complete and return to the Foundation. Be sure to sign the Stock Power with the same name(s) as on the stock certificate. If more than one name appears on the stock certificate, those individuals must both sign the Stock Power exactly as stated on the certificate. (DO NOT SIGN THE STOCK CERTIFICATE)

3. Send the Letter of Instruction and the Stock Power in a separate envelope from the actual stock certificate and mail both to the United Methodist Foundation, 223 Fourth Avenue, Suite 707, Pittsburgh, PA 15222. You will also need to include a copy of your photo I.D. with this request.

4. Once the stock is sold, the Foundation will forward a check to the church. The check will represent the net cost per share of the stock at the time of sale. For income tax purposes, your deduction will be the average between the high and low price of the stock on the date of the postmark of your Letter of Instruction or the date you hand-deliver the donation to the Foundation. A letter of confirmation from the United Methodist Foundation will be sent to you containing this information.

 
FacebookYouTube