Stocks / Mutual Funds

It’s easy to contribute stocks and mutual funds through Heaven's Family for “the least of these” around the world.

When you contribute appreciated securities:

- you receive an immediate tax deduction* for the full amount of the securities value on the transfer date if the securities were held for more than one year,

- you pay no capital gains tax,

- you can designate your gift to a specific fund just like a cash contribution.

Consider the following two simplified scenarios illustrating the difference between contributing stocks directly to Heaven's Family versus selling the stocks and contributing the cash proceeds to Heaven's Family:

Sam and Dan both have the joy of providing a home for 30 to 40 homeless orphans, and they are both able to claim a tax deduction of $15,000. However, Dan paid $750 in taxes because he sold his shares and contributed cash, while Sam directly contributed his shares to Heaven’s Family and avoided paying capital gains taxes.

NOTE:

•If securities are held for less than one year at the time of the contribution, the tax deduction is generally limited to the original cost of the securities.

•If the securities depreciate in value, it is beneficial to sell the securities, contribute the cash proceeds obtaining a tax deduction, and then claim the investment loss on the contributor’s tax return.

* up to 30% of your adjusted gross income with a five-year carryover of any remaining amount

** The 2011 long-term capital gains tax rate is 15% for those who fall in the 25% income tax bracket or higher. The capital gains tax rate is expected to increase in 2013.

To find out more about contributing stocks or mutual funds, just complete the form below and click submit, and we will email you the information you need to get started.