The gifting of securities is a "win-win" situation for both the donor and the church. Since Houston Faith Church is a 501 (c) (3) non profit organization, the gift will qualify as a charitable contribution and is tax deductible. For example: assume you own 1,000 shares of XYZ Inc. for which you paid $10 per share, total investment of $10,000. The stock is currently worth $20 per share for a total value of $20,000. Depending on your taxable income, if you sold the stock and gifted the $10,000 proceeds to Houston Faith Church, you would typically incur a capital gains tax of 15% on your $10,000 profit. Thus, you would pay $1,500 in taxes before giving anything to the church.
A better strategy is to gift the stock directly to Houston Faith Church. This is a very simple and easy process that can be coordinated through our Administrative office. On all tax questions, it is advisable to consult with your tax advisor or CPA.
For directions on how to transfer securities to the church please click here:
Instructions on Giving Securities.
For additional information please contact our office via email or 281-870-1010