Gifts of Stock
A gift of stock may be more tax-wise than a cash gift. As stocks grow in value, they may appreciate substantially beyond the original investment. When the stocks are sold, any growth above the original cost is considered a capital gain and is subject to federal capital gains tax of up to 20 percent (some states have a capital gains tax as well). By giving Spring Branch appreciated securities (that have been held at least a year and a day), you can avoid the capital gains tax and receive an income tax deduction for the fair market value of the stock at the time of the gift.

Example
Mr. Smith owns stock with a current value of $100,000. He originally paid $20,000 for the stock (his "cost basis" for the stock). This means when he sells the stock, he may pay a 20 percent capital gains tax on the appreciation ($80,000 in appreciation x 20% capital gains tax = $16,000). By giving the stock to Spring Branch Community Church rather than giving cash, he not only will receive an income tax deduction for the fair market value of the stock on the day of the gift, he also will avoid the $16,000 in capital gains taxes.

Stock $100,000 current value
Cost Basis $20,000
Appreciation $80,000
Capital gains tax avoided $16,000
by making gift (assuming    
20% capital gains tax) 
Current charitable tax deduction $100,000

For all questions on how to set up credit card gifts, electronic fund transfers, a lost receipt or any other general giving questions, call Rickey Ives at (757)333.7222

For more information on setting up a planned gift to benefit SBCC, please contact:

Bud Saterwhite
Spring Branch Community Church
1500 N Great Neck Rd.
Phone: 757.333.7222
Fax: 757.333.7236
E-mail: giftplan@springbranch.org