Giving Appreciated Stocks

Understanding the Tax Benefits

The tax benefits of donating stocks depend on the type of organization you’re giving to and your adjusted gross income. Donating appreciated stocks allows you to use their fair market value as an itemized deduction if you’ve held the stock for over a year.

Let’s say you bought 50 shares of Mock Industries at $20 each, totaling $1,000. Those shares are worth $40 each, making your investment worth $2,000. If you sell the shares and donate the after-tax proceeds, you’d have to pay 20% capital gains taxes on the $1,000 profit, leaving you with $1,800 to donate. However, donating the stock directly means the church receives $2,000, which you can deduct from your taxes.

Some ministries may not be set up to accept stock donations and might ask you to sell the stock first. This is less efficient due to the capital gains taxes involved.

Using Third-Party Organizations

On Today’s Program, Rob Answers Listener Questions:

• Is there a statute of limitations for a collection agency to collect credit card debt? 
• What is the best way to move multiple 401(k)’s from past employers to one account? 
• About $750,000 was invested with my investment manager across a few investments. I'm being charged 1% in fees, which I understand is standard, but another company mentioned most of my investments are in just 6 ETFs, so there is little active management involved, and I should be charged closer to 0.8%. Given the passive nature of the strategy, I would like a second opinion on if 1% seems too high. I also have about $50,000 left on my mortgage with a rate of 2.75%, and I can pay it off this year. I'm figuring out whether I should pay it off early.

Resources Mentioned:

• National Christian Foundation (NCF)
• Consumer Financial Protection Bureau
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App