Beth Chaim Congregation is now equipped to process stock donations for the fulfillment of your continuing generous contributions to our synagogue.

This approach can also be utilized for your annual dues payment as well.

As a congregant, the benefits to you of donating appreciated stock from your investment portfolio are significant and are summarized as follows:

  • The appreciated stock can be donated and Beth Chaim will receive full market value, regardless of your cost basis on the stock.
  • The benefits to you are two-fold.
  1. You receive a tax deduction for the full value of the contribution, regardless of what the cost to you was of initially purchasing the stock,
  2. You avoid any tax consequences on the long-term capital gain of the stock, (i.e., its appreciation or profit).

As an example, assume you would like to make a $5,000 contribution to Beth Chaim. One way of doing so would be to write a check for $5,000, (using after-tax money) and this would entitle you to a tax deduction for the year in which the contribution was made. Another approach, would be to gift appreciated stock worth $5,000. This would allow you to make the same $5,000 contribution, allow you to take the same tax deduction, avoid having you write a check for $5,000 of after-tax money and would also prevent you from having to recognize any capital gain consequences on the eventual sale of the shares of stock.

As another example, assume you have 200 shares of XYZ stock currently trading at $25.00 per share and is therefore valued at $5,000.

You paid $10.00 per share when you purchased these 200 shares of stock, or $2,000.

You can GIFT these 200 shares of XYZ stock to Beth Chaim, take a full $5,000 tax deduction and AVOID paying long-term capital gains tax on the difference between your cost, ($2,000) and the market value, ($5,000), or $3,000.

In other words, it only cost you $2,000 to make a $5,000 deductible contribution, with absolutely no tax consequences.

Bear in mind however if you decide to proceed with the gifting of appreciated stock, you MUST have owned it for at least one year or you will only be able to deduct your cost of the stock, not its current market value.

Please consider this approach in your donations to Beth Chaim. The Synagogue will benefit and so will you.

If you have questions, please contact either Joe Gabriel at This email address is being protected from spambots. You need JavaScript enabled to view it. or Aaron Gabriel at This email address is being protected from spambots. You need JavaScript enabled to view it. or your own financial and/or tax advisor.

Contact our bookkeeper, Neela Arumugham, at 925-736-7146 or This email address is being protected from spambots. You need JavaScript enabled to view it., for instructions on how to make your donation.

 

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