Making a gift of securities to the Foundation is beneficial due to the tax benefits that derive from such a gift. The current long-term capital gains tax is 15% for most filers. This rate makes giving securities a good alternative to a cash gift of the same value.
Note: It is the policy of St. Paul’s Foundation to sell gifts of publicly traded securities as soon as they are received.
Stock gifts are valued for gift purposes according to IRS rules, and the value is based on the mean price of the stock on the date of the gift. There are no capital gains taxes on appreciated stock that is given to St. Paul’s Foundation if the stock has been held by the donor for more than 12 months. However, it is important to follow some simple steps to expedite the transfer of the stock.
Stock Certificates
If you have the stock certificate, do not sign the certificate(s). Rather, sign a stock power, which is available from your broker, a bank, an office supply store, or from the Foundation office.
Mail the stock power in one envelope and the stock certificate(s) in another. Send both to:
St. Paul’s UMC Foundation
1340 Third Avenue SE
Cedar Rapids, IA 52403
You may also hand deliver the documents to St. Paul’s. If your stock certificate is for more shares than you want to give to the Foundation, please visit with Executive Director, Jerry Oakland, to make arrangements to re-issue shares to you. He can be reached at 319-200-1066 or Foundation.Director@stpaulsumc.org.
