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Christ Temple Church
Appreciated Securities


Making a Difference
 
Frequently Asked Questions
 
The Decision-Making Process
 
Setting up a Gift of Securities

This information is of a general nature only. For specific legal advice and assistance, you should contact your own attorney.

Return to Charitable Giving Index


Making a Difference

Have you ever wondered if you could make a gift other than cash to support the ministry of evangelism? You can give almost any kind of property and do it in many different ways. But some of the greatest tax benefits will be available to you if you give securities worth more than you paid for them.

Giving can be a rewarding experience for you and for us at the Christ Temple Church of the Apostolic Faith Inc. (Christ Temple). Your gift gives you the satisfaction of supporting an organization that is actively involved in evangelism. Also, it is encouraging to us because part of our ministry is devoted to helping people like you discover and enjoy the stewardship of giving wisely and effectively.

Because we are devoted to helping people give wisely and effectively, we understand that effective giving means careful planning. It makes a difference to you and to us because your tax benefits and our ministries are affected by the way you plan your giving. What you give and how you give are important questions to answer. Therefore, to better understand how a gift of securities may affect you and Christ Temple, let's begin by answering these questions.

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Frequently Asked Questions

  1. What can I give?
     
  2. What if my securities have gone down in value?
     
  3. How much can I give?
     
  4. How can I give securities and still retain the income?
     
  5. How can I give securities at my death?


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1. What Can I Give?

You can give almost anything you want to give: certificates of deposit, stocks, bonds, mutual funds, real estate, collections, your home, a farm, or other items of value.

The gift of appreciated securities may offer significant tax advantages that other assets may not provide.

Generally, when you sell securities that have gone up in value, you pay a tax on the profit. However, when you give those securities to Christ Temple, you don't pay any tax on the profit. You also get a charitable contribution deduction on your tax return for the entire value of those securities if they are considered long-term gain assets.

Here's how this works:

Suppose you bought 50 shares of a stock ten years ago for $1,000. Now that stock is worth $5,000. If you sell it and give the $5,000 cash to Christ Temple, you'll get the $5,000 charitable contribution deduction but you'll also pay income tax on your $4,000 profit.

There is a better way! Don't sell!

If you simply transfer ownership of the securities to Christ Temple, you get the same $5,000 contribution deduction and you don't pay any tax on the gain!

You can also give corporate bonds, government bonds, and other securities besides common stock.

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2. What If My Securities Have Gone Down in Value?

If the value of these securities has gone down instead of up, then sell before giving your gift of the proceeds to Christ Temple. You get a deduction for your capital loss plus a charitable contribution deduction for the sales proceeds. If you gave the securities to Christ Temple rather than selling first, you would not get the capital loss deduction.

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3. How Much Can I Give?

You can give as much as you wish! However, the tax law does specify exactly how much of your contribution you can deduct from your income.

Generally, you can deduct up to 50% of your adjusted gross income in any one year. If you give more than that, you can carry over the excess up to five years.

However, if you give appreciated securities held long term, your contribution is generally limited to 30% of your adjusted gross income. The carry-over rules apply here also.

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4. How Can I Give Securities and Still Retain the Income?

If you need the income your securities provide yet you want to give those securities to Christ Temple, you can retain an income for life in return for your gift. Here's how...

With A Gift Annuity

  • Make a gift of your securities at their fair market value today.

  • Retain annual payments for as long as you live.

  • Obtain a charitable contribution which may reduce your income taxes and your potential estate taxes.

  • Pay tax on only part of the capital gain which would normally be spread over your life expectancy.

    Go to Gift Annuity Section

With A Charitable Revocable Living Trust
  • Transfer securities to a trustee for the future benefit of Christ Temple.
  • It's flexible, simple, expedient, and very private. You can change your mind anytime, add assets to the trust, or take out any, or all, of them. You can change beneficiaries, income distribution, or the nature of the assets of the trust. You can even designate that at your death the trust shall become an unchangeable agreement and pay income to another person (subject to limitations your trustee may have).

  • You retain the income for life (or until you change your mind),and the trust fund is not subject to probate. It is not part of your taxable estate, unless you designate the income to go to a person other than your spouse after your death.

    Go to Revocable Living Trust Section

With A Charitable Remainder Unitrust or Annuity Trust
  • Transfer securities to a trustee for the future benefit of Christ Temple.

  • Receive an income tax charitable contribution deduction.

  • Retain an income interest for life.

  • Save on estate taxes if your estate is large enough.

    Go to Unitrust Section

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5. How Can I Give Securities at My Death?

If you prefer to control and manage your securities and other property and give them to Christ Temple at your death, you can make that gift either through your Will or through a "Payable on Death" account at some security brokerage firms.

You will not receive a charitable contribution deduction on your income tax returns, but you will certainly reduce the amount of your estate that may be subject to tax. Assets in a "Payable on Death" account will also avoid probate. You can be assured that Christ Temple will eventually be able to use your gift for the ministry of evangelism.

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The Decision-Making Process

What are the primary considerations in making a gift of securities?

One consideration is assessing whether you need the income your securities now provide. If so, there are a number of ways you can give securities to the Christ Temple Church and retain a life income in return for your gift.

Once you've determined whether you need the income your securities provide, the next step is selecting the plan that would be best for you. Because selecting the right plan depends on your individual situation, you may want to ask yourself a few questions. Would it be meaningful to have a plan by which the income is retained for you or a loved one? Would you benefit from claiming a charitable contribution deduction on your income tax return or would you need to have access to the principal?

A second consideration is the need to give a gift to support something you believe in. A gift of securities is a unique opportunity to give a gift--other than cash--that will make a difference in accomplishing the work of God through this ministry. Do you desire to make a difference, and do the ministries of the association connect with this need you feel? Would you be blessed to know that your gift enables others to come to know Christ?

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Setting up a Gift of Securities

If this is your desire, we want to be of assistance to you in making a gift of securities. Selecting the right plan depends upon your individual situation. We would be happy to help you and your advisors explore the available options in charitable gift planning. If you have questions and would like to talk to one of our representatives about a Real Estate Gift, please contact our office via mail, phone, or e-mail at:

Christ Temple Church of the Apostolic Faith Inc.
9020 B Woodyard Road
Clinton, MD 20735-4214

(301) 868-3567

e-mail: christteme@aol.com

Information sent via the Internet may not be secure

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The purpose of this section is to provide information of a general nature only.
For specific legal advice and assistance, you should contact your own attorney.


Return to Charitable Giving Index
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