Indiana Masonic
Home Foundation

It would be more tax advantageous to sell the depreciated stock, thereby establishing a capital loss, and then contribute the cash proceeds to us.

Yes and there can be significant tax advantages for making such a gift. We will assist you in the proper procedures to follow.

There are three commonly used methods:

1. By Hand: When you deliver stock by hand, you can either endorse the back of the stock certificate (s) in our presence or sign a separate stock assignment form, which is often called a stock power. If you cannot or do not wish to deliver the stock to use by hand at our offices, we may be able to arrange a meeting with you at your home.

2. By Mail: If you are delivering stock by mail, we recommend that you send the stock certificate (s) and the signed stock power (s) in separate envelopes. We further recommend that the stock certificate (s) be sent by registered or certified mail, return receipt requested. Please enclose a cover letter providing your name, address, and telephone number along with any designated purpose for which the gift is being made. We will need a separate stock power form for each certificate of stock; be sure to sign the stock powers (s) exactly as the name reads on the stock certificate. Do not fill in our name on the stock power. Stock power forms are available from us or from your banker or broker.

3. Through a Broker: If you are delivering stock to use through a broker, instruct your broker to hold the stock for our account; do not instruct your broker to sell the stock, either in your name or in our name. Your broker should immediately give us a call for further instructions. If you have a questions about any of these three methods, please do not hesitate to give us a call.

It depends upon the method of delivery.

1. If the stock is delivered by hand, the date of physical delivery to us controls.
2. If the stock is mailed, the postmark date controls, assuming the stock certificate (s) and stock power (s) are received in due course.
3. If the stock is delivered through a broker, the date the broker transfers the stock into an account in our name is generally the date that controls.

For stock regularly traded on a stock exchange, the charitable deduction is determined by using the average between the high and the low price on the date of the gift. For over-the-counter stock, use the average between the closing bid and asked prices on the date of the gift.

Charitable deductions for gifts of stock and other appreciated property may be utilized up to 30% of your adjusted gross income in the year of the gift. If you make a sizeable gift, you may have to carry over part of your deduction to succeeding years. To the extent necessary, you can use your adjusted gross income for the year is $100,000, up 10 $30,000 of long-term appreciated stock given to charitable institutions and organizations is deductible this year; any amount over $30,000 may be carried forward for up to five additional years.

If you own stock that currently provides you with a low annual yield, maybe 2%-3% or less, a “life income” gift may be appropriate. You could transfer the stock to us and establish a trust that would provide you with a 5% or greater annual return. This income would be paid to you and/or a loved one for life, after which the assets would be distributed outright to us. Through such an arrangement, you would be increasing your income and making a meaningful (and tax-deductible) contribution to us at the same time.