Gift of Appreciated Securities

Securities and mutual funds that have increased in value and been held for more than one year are popular assets to use when making a gift to support the ELCA, your congregation, your synod, or the ministries or organizations you specify. Making a gift of securities or mutual funds offers you the chance to support our work while realizing important benefits for yourself.

When you donate appreciated securities or mutual funds in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.

Securities are most often used to support our work in the form of:

An outright gift. When you donate securities to an ELCA ministry, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.

A transfer on death (TOD) account.* By placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime.

More Information

1. To transfer securities to the ELCA: You or your broker should contact the ELCA Foundation at 800-638-3522 ext. 2976 or elcafoundation@elca.org for security transfer instructions and brokerage account information. You should notify the ELCA Foundation when donating securities for a specific program or purpose.
2. Deduction – For gifts of publicly traded securities, the deduction is determined by taking the average, or mean, between the high and low trading prices of the security on the date of the gift or the nearest trading date(s).
3. Other securities – Closely held stock, Subchapter S corporate stock, limited liability company interests and partnerships can sometimes be used to make a charitable gift. Any proposed gift of such assets should be reviewed with the ELCA Foundation and the donor’s tax advisors in advance. An S corporation, limited liability company or partnership may also donate specific assets and the deduction will be divided among the shareholders or members.

Additional ways to fund your gift:

• A gift in your will or living trust.
• A donor advised fund.
• A memorial gift.
• An endowed gift.
• A charitable gift annuity.
• A charitable remainder trust.
• A charitable lead trust.

*State laws govern transfer on death accounts. Please consult with your bank representative or investment advisor if you are considering this gift.