Before getting too deep into this discussion, for the sake of my fellow Texans let me clarify the term “stock.” While I’m certain we can find a stock trailer for gifts of cattle, sheep, buffalo, and goats should you wish to contribute livestock to further the ongoing work of the ministry, herein we are speaking principally about stock shares held in companies in which you have invested.
With that definition of terms clarified for my Texas brethren, giving shares of stock may be more tax-wise than an equivalent cash gift via credit card or check. As stocks grow in value beyond the original investment, you are liable to pay capital gains tax when you sell the appreciated stock. Currently, this can be as much as 15% federal tax, plus any applicable state tax, perhaps 5% or so.
This is a good thing! Paying capital gain tax means you made a wise investment when you purchased the stock. But here is an even better idea: If you make a gift of your appreciated stock to Lifetime Guarantee, you pay no taxes! And, you receive a tax deductible receipt for the full amount of the stock’s fair market value. A shrewd move indeed!
Here is an example to consider: You paid $5,000 for XYZ stock. Because you were a wise investor, XYZ stock has appreciated and is now worth $10,000. Yippee! Now, if you sell your stock, you will probably pay about 20% tax (15% federal and 5% state) on the appreciated value of $5,000. This means, when the tax man cometh, you will owe $1,000 (20% of $5,000). Bummer! However, if you give the stock as a contribution to the ministry of Lifetime Guarantee, not only do you get credit for a $10,000 tax-deductible contribution, but you pay no capital gains tax. Good plan!
How do you make this happen?
Please contact our broker, JDL Securities in Newport Beach, CA, and speak to Gayle or Kathi. Their number is 949-752-5206. They will guide you through the process of identifying the stock correctly, determining the number of shares you wish to contribute, and communicating accurately with your broker. In addition, please send us an email, email@example.com, or give us a toll-free call, 1.888.395.LIFE (5433), and let us know of your stock gift. This will ensure a prompt receipt from us to you and facilitate clear communication with JDL Securities.
Necessary information: The effective contribution date is the date the stock shares are placed in the Lifetime Guarantee account and the value of your gift is the stock’s price on the date received. So, if you are desiring your gift to be an end-of-year gift, the stock must enter our account no later than December 31st.
If you would like to make a contribution by transferring mutual fund shares, please contact either our office, or Gayle or Kathi at JDL Securities, for guidance and counsel. Typically, these shares take a couple of weeks to transfer.
Gayle or Kathi at JDL Securities in Newport Beach, CA 949-752-5206
Lifetime Guarantee, Inc. 1.888.395.LIFE (5433).
Thanks for your partnership, and if you have not done so already, I encourage you to visit our Financial Stewardship page at to understand how your gift is used to achieve our common purpose.