The Shepherd's LightHouse, Inc.

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                                            Brokerage Account

 

THE SHEPHERD’S LIGHTHOUSE NEW CHARITY FUND
   Charitable Contributions of Stock

Dear Friend,

As a non-profit we are always trying to create new ways for our contributors to give. Have you ever considered donating appreciated stock from your investment portfolio instead of cash to a charity? Your tax benefits from the donation can be increased and we would be happy to receive the stock. This technique may work for other similar contributions, from $100 to $1 million, depending upon your individual tax situation. So don't think that you have to be in the class of the Ted Turners or Bill Gates of the world in order to make the contribution of appreciated stock work for you from a tax standpoint.

Giving stock to our brokerage account is as easy as you calling us, we give you the account information, you call your broker, stock is transferred, you receive the tax break and we receive the stock. How does this work? This tax planning tool comes from the general rule that the deduction for a donation of property to charity is equal to the fair market value of the donated property. Where the donated property is "gain" property, the donor does not have to recognize the gain on the donated property. These rules allow for the "doubling up," so to speak, of tax benefits: A charitable deduction, plus avoiding paying tax on the appreciation in value of the donated property. Be aware that if the shares were held for a year or less, the shares would be treated as "ordinary income property" for these purposes, and the charitable deduction would be limited to the stock's $5,000 cost. So remember that if you are considering the contribution of appreciated stock, you need to make sure that the shares have been held for more than one year and qualify for the "qualified appreciated stock" deduction. With donating to any charity please check with your CPA first for any changes to income tax laws.

Thank you in advance for your time and consideration. Please do not hesitate to contact me with any questions or comments you may have, and I will respond promptly with any additional information you require. I look forward to discussing this incentive with you.

Sincerely,

 

Yolanda East

Executive Director