Eager to make some quick money, a young man answered an ad for painting a porch.
An older woman answered the door and said, “I'm glad you're here - the last painter I hired cancelled at the last minute. Go around back and you’ll see all the equipment you need. When you’re done, I’ll pay you $500.”
This was better than he had expected! He went around back and was surprised by what he found - and then started chuckling to himself. He taped and prepped, then fired up the paint sprayer and was done in no time. Pleasantly surprised at how quickly the work was done, the woman paid him right away.
As he pocketed the cash, he thanked her and added, “By the way, you should know it’s not a “Porsche” that you have parked back there - it’s a Mercedes Benz.”
(Illustration adapted from Peter Loughman.)
For many believers, investing money in God’s work is a perfect example. And giving appreciated stock, instead of cash, can be a win-win situation for you and the ministry that’s important to you, like Mission India.
Do you have stock that has increased in value from the time of purchase? Have you had it for more than a year? If so, you can avoid or reduce capital gain tax by donating the security to a ministry like Mission India and the total amount will still be eligible for a tax deduction. Talk about a win-win!
Giving to a Christian cause or organization is a great example of a Biblical win-win. Not only do you support their work, but you create an opportunity for God to bless you, too.
Luke 6:38a says, “Give and it will be given to you. A good measure, pressed down, shaken together and running over...” As you bless others, He in turn blesses you... often more than you could have imagined.
Several years ago Tim bought 100 shares of a stock at $10 a share; it’s currently worth $50 a share. Now he wants to make a gift to Mission India.
If he sells the stock first, he’ll have a long-term capital gain of $4,000. Because Tim’s in the 20% federal long-term capital gain tax bracket, that takes $800 out of his donation (not including state income taxes)—and lowers the value of his gift and deduction to $4,200.
However, if Tim were to give the appreciated stock directly to Mission India, the ministry would get the total $5,000 market value of the stock, and he could claim the total amount as a charitable contribution on his taxes. His tax deduction would be $5,000 rather than $4,200 if he had sold it and given the after-tax amount.
Click here for details on how you can impact lives in India through a gift of stock to Mission India
Interested in more information about creating or updating your Will or Estate Plan?
Contact Mission India by calling (616) 453-8855 or toll-free 877-644-6342 or email email@example.com.
This is general information and is not intended to be tax or legal advice. Please consult your own advisors.
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