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FOR IRA OR ROTH IRA
Since IRA/Roth IRA are always free of capital gains tax, there is no need to gift the shares to the church. You may simply sell shares / apply for distribution to your bank account and donate as usual. The amount is counted as income (IRA's only / not Roth), but if donated, it is tax-deductible at tax time. *But if under 59 1/2, you will be subject to the 10% penalty (see your tax advisor). **If you are over 70 1/2 and taking minimum distributions, you may donate the amount directly to the church. Your IRA fund company should have instructions/form for that.
FOR STOCKS AND REGULAR MUTUAL FUNDS (non retirement)
1. Don't sell your shares directly.
2. Write a letter to your brokerage firm, instructing them to transfer X shares or X$ amount (as shares) from your account # TO: the church Non-profit organization account at -
Charles Schwab: account number (32325874), Charles Schwab DTC number (0164), and account name (Houston Faith Church).
Ask for our EIN# (tax id) if you need it. Address:
Houston Faith Church
5757 N. Eldridge Pkwy
Houston, TX 77041
3. This letter requires a Medallion Signature from your bank or firm (somewhat like a Notary, but a special legal seal required when transferring stock or funds).
4. After the Medallion signature, mail to your brokerage firm, and then please send the church office an indication of when you are transferring the stock.
Regarding the number of shares you are wishing to transfer, if you are not transferring your whole position in a security, you may designate which shares to transfer, i.e., FIFO v. LIFO to maximize your tax considerations. But shares must be owned for at least one year.
Upon receiving the stock in into the church's account, the donor will be provided with a non-cash gift letter. You are responsible to apply the value of the gift and report it properly at tax time.
The value you can deduct for your donation is between you and the IRS, but it is the church's understanding that it is the average of the high and low price for the trading day.
Thank you in advance for your donation!
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