MorningStar

Save Income and Capital Gains Taxes
When giving to charity most people think of writing a check, yet transfers of appreciated assets can be more beneficial for you. If you have held assets (such as stocks and bonds) for more than one year and they have appreciated in value, you can transfer them to MorningStar and save in taxes. You will not only get a tax deduction on the current value of the asset, but you also avoid capital gains taxes.

For example, say you bought a block of stock for $1,000 a few years ago and it is now worth $2,500. If you transfer the stock to a ministry (instead of selling it and giving the cash), you will get a $2,500 deduction and avoid the capital gains tax on the $1,500 increase in value. This is a great example of better stewardship and a multiplication of talents. You only invested $1,000, but you are giving $2,500 to the work of the kingdom and reducing your taxable income $2,500. You basically received an extra $1,500 tax reduction, and the ministry received an extra $1,500, for free.

The best method of transferring appreciated assets, such as stocks, bonds, mutual funds, or real estate, depends on how they are held by you. It is important to avoid selling the assets and then making a gift of the proceeds, because this will trigger a capital gains liability for you. Please contact the MorningStar Planned Giving office first to discuss the best method of transferring assets.