Stocks & Bonds
Make a gift of publicly-traded securities to Moravian Theological Seminary and save income tax and capital gains tax, too.
A gift of publicly-traded securities could be right for you if:
- You own publicly-traded securities that you bought at least one year ago.
- Some of these securities have increased in value since you bought them.
- Some of these securities may provide you with little or no income.
- You would like to make a gift to Moravian Theological Seminary.
How it works
- You transfer shares of one or more publicly-traded securities, such as stock, bonds, and mutual funds to Moravian Theological Seminary.
- The two most common ways to give publicly-traded securities are to make an outright gift of your securities or to make a gift of your securities and receive payments for life. If you opt to give securities and receive payments for life, here’s what you do:
- You transfer securities to the life income plan.
- During the term of the life income plan, you receive payments from the plan each year, typically for life.
- When the life income plan ends, its remaining principal goes to support Moravian Theological Seminary.
Using securities to fund a life income plan typically will reduce your income taxes and reduce or eliminate your capital gains taxes. There are several life income plan options to choose from. The one that is right for you will depend on a variety of factors.
Allen Loker would like to make a $10,000 gift to Moravian Theological Seminary. While he could write a check for this amount, he will be able to save even more in taxes by giving stock worth $10,000 instead. After reviewing his plans with his investment advisor, he decides to give shares of Poptropica Corporation worth $10,000. He paid just $1,000 for these shares when he bought them 20 years ago.
- Allen will earn an income tax charitable deduction of $10,000, which will save him $3,960 (39.6% tax).
- Allen may deduct up to 30% of his adjusted gross income in the year of the gift, with a five year carry-forward period.
- He will avoid tax on $9,000 of capital gain, which will save him an additional $1,800 (20% tax).
- He will gain the satisfaction of making a $10,000 gift to Moravian Theological Seminary.