Transfer Securities

Benefits of Donating Securities

If you donate securities like stocks, bonds, and mutual funds to King’s Way, not only do you get to take a tax deduction (equal to the fair market value of the security, assuming you qualify), you do not have to pay the taxes on any accumulated capital gains in the investment you donated. 

Examples:

Assume the donor is in the 32% federal tax bracket and itemizes their tax deductions, so they are able to take a tax deduction for charitable donations. 

Example 1:  Donate $50,000 of cash to King’s Way

The donor would get to take a $50,000 tax deduction and thus saves $16,000 in taxes for making the gift.

Example 2 Donate $50,000 of appreciated stock to King’s Way

Let’s assume the donor has $50,000 of stock they purchased for $20,000 and thus have an unrealized capital gain of $30,000.  When they eventually sell the stock, they will realize a gain of $30,000. If they are in the 32% federal tax bracket, they would pay 20% in capital gains taxes or $6,000 in taxes.  

If they donate that stock to King’s Way, they will still receive the $50,000 tax deduction (see Example 1) and save $16,000 in taxes for making the gift. They would also not have to pay the capital gains taxes of $6,000 they otherwise would have on the stock, thus increasing their tax savings from $16,000 to $22,000.  

In this example, by making a gift of $50,000 to King’s Way, the donor saves $22,000 in taxes, and, therefore, only had to pay $28,000 “out of pocket” for a $50,000 gift to King’s Way.

How to Transfer Stock or Mutual Funds to King’s Way

    1. Fill out this Letter of Intent. 
    2. Submit the LOI document to your stockbroker to release the funds.
    3. Submit a copy of this LOI document to communityengagement@andersonfinancialgroupllc.com. 

Please make sure the following has been filled out: 

    • Your name address
    • Name of the asset donated
    • The quantity of the asset
    1. Request your broker to initiate the transfer to National Christian Foundation (NCF)

Note: Please consult your tax and/or investment advisor to confirm eligibility for the above donation strategies.