How to Donate Securities
Donors should contact their broker, trust officer, or bank in writing to notify them of their intention to give a gift to All Saints Parish.
The letter should be dated and state the following:
- The name of the stock and the number of shares;
- The purpose of the gift. If it is for a pledge, please specify whether it is to be credited to the current year, the prior year or to some future year;
- Please transfer your stock to Charles Schwab. For information regarding our DTC, account numbers and EIN number, please contact John Plonowski, All Saints bookkeeper, at (617) 738-1819 ext. 17; or by Fax at (617) 738-7501; or by email at bookkeeper@allsaintsbrookline.org.
- Please alert Kenneth Coleman, All Saints Treasurer, that the stock is being transferred and to follow up the gift with a letter stating the date of the gift, the (mean) value of the shares on that date, and your intention for the use of the gift. Because the total value of your gift is determined by the value of the shares on the date of the gift, this information is of extreme importance to us.
If you are making a gift of an actual stock certificate in your name, you will either have to sign the back of the certificate in the appropriate place, or sign a stock power, and also fill out a "Letter of Authorization." Both of these forms are available through the Treasurer, Kenneth Coleman, or the Bookkeeper, John Plonowski. Please note that you must sign the stock certificate or the stock power exactly as your name appears on the stock certificate.
Should you have any questions concerning these instructions, please do not hesitate to contact the Treasurer's Office for assistance. As always we thank you for your generous support.
Why you need to understand the rules regarding Charitable Giving
By understanding the tax incentives for charitable giving, you can enhance the effectiveness of your gifts and decrease your cost of giving, either during your lifetime or through your estate. In addition, knowing the rules can help you avoid unexpected or adverse tax consequences, thereby preserving the spirit of goodwill to God, which is the true meaning of your giving.
Tax Benefits to Charitable Giving
The tax law allows you to deduct an amount equal to the value of charitable contributions made during your lifetime, as long as you itemize deductions. Keep in mind the tax law also establishes certain limits regarding Charitable Gift deductions. Annual limitations on Charitable deductions are stated as a percentage of the donor's Adjusted Gross Income (AGI). For All Saints' purposes the limitations are either 50% or 30%.
50% limitation of contributions base (AGI)
Contributions of cash, annual pledges, are deductible up to 50% of your adjusted gross income. Any portion of the contribution you cannot deduct this year, can be "carried forward" for 5 years.
30% limitation of Contribution base (AGI)
Contributions of property, e.g. stock that you have owned for longer than 12 months, are deductible up to 30% of your adjusted gross income. Any portion of the contribution you cannot deduct this year, can be "carried forward" for 5 years.
Using Investments to Enhance the Benefits of Charitable Giving
One way to fulfill charitable obligations at the lowest after-tax cost is by donating appreciated securities instead of cash. By donating stock you can obtain a deduction for the current fair market value of the stock and avoid paying taxes on the capital gain you would have realized if you had sold the stock and donated the proceeds.
Here's how it works. The chart below uses three comparisons. The assumption is a $10,000 donation (tax-deductible pledge), 31% tax bracket, and the resulting net cost to you:
Type of Gift |
Stock |
Cash from Sale of Stock |
Cash |
Value of Gift |
$10,000 |
$10,000 |
$10,000 |
Cost Basis |
$4,000 |
$4,000 |
$10,000 |
Federal Capital Gains Tax |
$0 |
$1,200 |
$0 |
State Capital Gains Tax |
$0 |
$300 |
$0 |
Federal Tax Rate (31%) |
$1,911 |
$1,911 |
$4,777 |
Effective State Rate (4.11%) |
$253 |
$253 |
$633 |
Government "Help" |
$3,836 |
$2,336 |
$0 |
Your Cost of Giving |
$6,164 |
$7,664 |
$15,410 |
By contributing shares of your stock rather than selling the shares and contributing the proceeds, you reduce the "cost" of your contribution, and allow the IRS to "share" with you. The example above is suited for your annual pledge, which is used for the operating budget.
Any questions regarding your own financial situation should be addressed to your tax or legal advisor.