Blog Post

Am I able to donate my stocks or mutual funds to Grace Chapel?

Generally, yes. For example, if you have appreciated stocks or mutual funds in a taxable investment portfolio, you likely have a significant opportunity to pay less tax, give more, improve your personal cash flow, and simplify your giving. Stocks, bonds, and mutual funds are great ways to give without incurring capital gains on appreciated assets. Gifting appreciated assets results in a double tax benefit: (1) no income tax due (ordinary or capital gains) to you and (2) the full value of the donated asset goes to the church.

For example, if you purchased stocks, mutual funds, and bonds for $1,000 several years ago and the value is now $10,000, rather than selling the securities and paying tax on the $9,000 gain, you could donate the securities directly to the church. You would avoid capital gains taxes on the $9,000, receive a $10,000 charitable giving tax deduction, as well as provide the church with the full $10,000 value of the securities. Grace Chapel will receive the stocks, bonds, and mutual funds directly (don’t sell them first!) and, after receiving the donation, liquidate the assets (Grace Chapel will not pay income tax or gains) and utilize the proceeds for the building fund.

If you hold a traditional IRA, you may also be eligible to donate your required minimum distributions, up to $100,000 per year if paid directly from the IRA to the Church. You will not incur income taxes on the distribution (a big bonus to you) and Grace Chapel will receive the full value of your donation, with no tax loss.