Stock Transfers, the Basics


Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.

2 Corinthians 9:6

PROFIT: If you held a stock for more than a year and it has increased in value – transfer the stock directly to your charity of choice. If you are able to itemize on your individual tax return, you can deduct the fair market value of the stock on the day you give it away. You will also avoid capital gains taxes on the increase in value. (If the stock was held for less than a year different rules apply.)

LOSS: If the stock has lost money – it is better to sell the stock and donate the cash. If you are able to itemize on your individual tax return, you can deduct the donation and be able to take a capital loss on the investment.

To Transfer Stocks to Zion

Contact your bank or brokerage firm that holds the stock and ask their requirements and expected time to make the transfer. They may have a form to fill out, require a letter of instruction or letter of authorization
Contact Steve Peterson at Zion Lutheran (763-682-1245) for the needed instructions and account information on Zion’s end.

There is a RMD (Required Minimum Distribution) for people over age 70½. Tax law has been that if you have RMD you can transfer up to $100,000 from your IRAs to a charity tax-free. The gift counts toward your required minimum distribution for the year, but if directly transferred to the charity it is not included in your adjusted gross income.

Another alternative: Donor advised funds are a way to donate now and wait until later to choose the charity to receive the donation. Donor advised funds are managed by many brokerage firms, mutual fund companies or community foundations.

Please note that these rules change and current tax law may be different. I’m not a stock guy, financial adviser or tax expert. Fortunately we have those people at Zion and in the Buffalo area. If you would like to transfer stocks to Zion as part of your charitable giving in 2020, your Zion contact is Steve Peterson.

For more complete information please see the Kiplinger article: 5 Things You Should Know About Giving Stock to Charity.

“Think of the joy your money will bring to the lives of those who will be saved or delivered through it.”

John Avanzini