December has snuck up on us again. One minute we can be planning a trip to the lake and then suddenly the weatherman tells us that to expect snow tomorrow, and then its December, and the end of the year. Time flies when you are serving the Lord!
We of course, are alllooking forward to celebrating the season of Christmas and rejoicing at the birth of our risen Savior! In addition to celebrating Christmas and all that goes with that, December is also the last month to accomplish all of the goals that you may have made for the year. For many, planning a final charitable donation for the year is a part of the December rush. In fact, World Mission Prayer League typically receives about twice as much in donations during the month of December than it does during any other month of the year.
Donating stocks to a charitable organization is a relatively uncommon way of making a donation, but it can be extremely beneficial for the donor. The World Mission Prayer League is set up to receive donations of stocks.
Here is how it can be beneficial to the donor. Suppose you own 100 shares of XYZ Corporation. (This works for mutual fund shares as well). If you purchased it at $10 a share and sell it at $15 a share you have incurred $500 of capital gain, which will be taxed by the IRS. If on the other hand you were considering donating $1,500 to WMPL you could instead donate the 100 shares of XYZ Corporation directly to WMPL. WMPL will sell the shares and receive the $1,500 donation that you intended. As for you, you will receive the full $1,500 charitable contribution deduction (This is based on the value of the shares on the day they are transferred to WMPL.) and you will not incur any capital gains income. This is only beneficial to you if you donate stock that has appreciated in value. If this idea is interesting to you and you would like more information please contact me Jeff Dahl at jdahl@wmpl.org or 612-871-6843. I can provide you with the information needed in order to transfer stocks or mutual funds or answer any questions you may have. It is also a good idea to contact a tax accountant to make certain that this type of donation is beneficial for you.