Stocks/Mutual Funds

Giving more for less ... A stewardship resource

Benefits | Example | Procedures

The benefits of giving stocks to GFA.

• You completely avoid paying capital gains tax by giving stock directly to Gospel for Asia.
• You can receive a tax deduction for up to 30 percent of your adjusted gross income, and there is a five-year carryover
• For the same after-tax cost as giving cash, you may be able to give substantially more to Gospel for Asia with a gift of stock.

For many people, it is better stewardship of God's resources to transfer stock shares directly to Gospel for Asia rather than to sell them and donate the proceeds. By giving securities that you have owned for more than one year, you will receive an income tax deduction for the full fair-market value, and you will completely avoid capital gains tax. If your stock has grown in value since you acquired it, this method gives GFA the largest possible gift and allows you to deduct a larger charitable contribution. All of these combine to radically decrease your tax liabilit.

An Example:

Scott has been a regular supporter of Gospel for Asia radio broadcasts. When he heard about the benefits of giving appreciated stock instead of cash, he decided to try it. Years ago, Scott purchased shares of his company stock for $5,000. Now those shares have a market value of $10,000.

If he were to sell the stock and then give the proceeds, Scott would incur $5,000 in capital gains ($10,000 market value minus $5,000 cost basis). After he pays taxes of $1,050 (the 15 percent federal and 6 percent state capital gains tax rate on the $5,000 gain), his gift to GFA and charitable deduction would be $8,950.

By giving the stock to Gospel for Asia, Scott can claim a charitable deduction of the full market value of the gift ($10,000). GFA can then sell the stock and apply the full proceeds ($10,000) towards their Gospel radio broadcasts. And, since a gift to GFA is not a sale, Scott will not owe any capital gains tax on the transaction.

Scott's tax deduction for his charitable gift was $4,100. When he subtracted that from his original cost for the stock, he realized that it actually cost him only $900 to provide a gift worth $10,000 to the Lord's work! The process was as easy as giving his broker the information listed below, and saving the monthly statement from his investment firm to verify his charitable gift. Scott was so excited about his ability to give more for less that he has determined to make giving stock his regular method of charitable giving.

Gifts of Stock and Mutual Funds Procedures

The preferred way to give shares of stock or mutual funds to GFA is to transfer the shares to our Wachovia Securities account.

1. If your shares of stock are in a Wachovia Securities account, a direct transfer can be made to:
   
   
    Account name: Gospel for Asia, Inc.
    Account number: 3764-8370


2. If your shares of stock are with another brokerage firm, a DTC transfer can be made through:
   
   
    National Investors Services Corp
    Deliver to DTC Clearing # 0141
    for Gospel for Asia
    Wachovia Securities account #3764-8370


3. If you have the stock certificate in hand, you should:
   
   
1. Endorse the back of the certificate appointing Wachovia Securities as attorney to transfer the certificate. Leave BLANK the line regarding to whom the certificate is being transferred.
   
2. Sign the back of the certificate exactly as the name(s) appear on the front.
3. Write a letter indicating that you wish to donate ___ (number of shares) of _________ (name of stock) to Gospel for Asia's Wachovia Securities account #3764-8370.
   
4. Mail the certificate and letter to the following address:

      Jackie Speth
      Wachovia Securities
      815 North Water Street
      Milwaukee, WI 53202


4. VERY IMPORTANT: We sometimes receive notification that gifts of stock or mutual funds have come into our account, but are unable to determine whom the donor is, or how he or she would like the proceeds spent. To avoid this problem, on the day of the transfer, please contact Gospel for Asia to let us know:
   
   
• the name of the stock,
• the number of shares,
• the date of the transfer, and
• your designation for how the proceeds from the sale of the stock should be used (native missionary support, where most needed, Bibles, radio broadcasts, etc.)


5. After we receive the gift of stock or mutual funds, Gospel for Asia will immediately liquidate the shares and send you a Gift-in-Kind receipt. This receipt lists the name of the stock or mutual fund, the number of shares, the date they were given, and that no goods or services were received in exchange for the gift. IRS regulations do not allow us to state the value of the shares on the receipt. Since the value of stocks and mutual funds fluctuate so quickly, the fair market value of your gift can be determined from the statement from your investment firm - which is the value of the stock or mutual fund at the time the transfer was made from your account. This is the amount that you may claim as a charitable deduction when you file your income tax return.
   
   
6. If your mutual fund shares cannot be transferred to Wachovia Securities, Gospel for Asia has accounts with several mutual fund investment agencies. If we don't have an account with the agency that handles your mutual fund, we will open one. Then a transfer can easily be made from your account to our account, and we will redeem the shares for use according to your designation.

For more information:

If you have any questions or wish to start the process for your gift, please fill out the contact form, or call Gospel for Asia at 1-800-WIN-ASIA (1-800-946-2742).

DISCLAIMER: This information is designed to provide information and illustration of the subject matters covered. It is not intended, nor should it be used as legal, accounting or other professional advice. It is always a good idea to seek legal and tax advice from your professional advisor(s).