Thank you for your support of Corpus Commons. Please follow these steps to ensure your donation is properly transferred.

Benefits of Donating appreciated stock

If you own appreciated stock, can donate (transfer) that stock to Corpus and potentially benefit in 2 ways (Please consult your tax professional):

  1. You do not pay any tax on the appreciation (increase in stock value since you acquired it).
    • This could be a savings of up to 23.8% if this is a long-term capital gain, meaning you’ve owned the shares for more than 1 year.
    • If you’ve held the shares for less than 1 year, the short-term capital gains savings could be even more.
  2. If you itemize deduction on your taxes, you can deduct (as a donation) the full value of the shares on the day it is transferred.
    • Note that this full deduction only applies to stock that you’ve owned for more than 1 year.
    • For stock held less than a year, you can only deduct the basis (cost at which you bought it). However, the savings from not paying short-term capital gains can be significant, and not everyone itemizes deductions.

Example: You bought 1000 shares of ABC for $1 per share. You have owned the shares for more than 1 year and they are now worth $10/share. You have earned $9,000 in long-term capital gains. Let’s consider 2 approaches:

  • Approach A: You sell the shares, pay the taxes due on the profit, and donate what is left to Corpus.
  • Approach B: You donate the shares directly to Corpus.

The following table compares the outcomes for the 2 approaches:

Approach A

Approach B

Difference

Sale proceeds

$10,000

Capital gains taxes due: 23.8% x $9,000

$2,142

$0

No taxes paid with Approach B.

Amount of donation to Corpus

$7,858

$10,000

Larger donation with Approach B.

Amount to deduct on Schedule A as donation

$7,858

$10,000

Larger Sched A deduction with Approach B.

This illustrates the possible advantages of donating appreciated stock directly to Corpus. The donation may be larger and your tax deduction may be larger.

  • All of the above applies to donations of appreciated bonds and mutual funds, as well as stock.
  • The following instructions should guide you in how to transfer shares from your broker or account to Corpus. We use a Charles Schwab account to receive the shares.
  • You will be sent a detailed accounting of the donation/transfer (# of shares, date received, FMV of shares on date received,…).
  • If you have any questions, please contact [email protected]

 Instructions for Donating appreciated stock

  • Contact your broker. Let him or her know of your intent to transfer stock to the Corpus Commons account.
  • Tell your broker the type of stock and the number of shares you would like to transfer.
    • Some brokers will require you to submit a written confirmation letter authorizing the transfer.
    • Remind your broker to include your name with the transfer information.
  • Transfer basics:
    • Transfer to “Owner name/account title”: Corpus Commons
    • Attn: Chad Summervill
    • Account type: NPO
    • Account number: 9607-9926 (Charles Schwab & Co.)
    • DTC #: 0164, code 40
  • Important: To ensure that your gift is promptly recognized and acknowledged, please send a copy of the confirmation letter, via mail or email to:
  •  

Benefits of Donating a QCD from your IRA

When you withdraw money from a traditional IRA, it is considered taxable income.

A QCD (Qualified Charitable Distribution) is a distribution from an IRA, owned by an individual who is 70½ or older, that is paid directly from the IRA to a qualified nonprofit. You do not pay any taxes on this withdrawal.

  • This can be particular beneficial for donors who do not itemize and instead file the standard deduction. Talk with your financial advisor about your situation.
  • Every IRA account holder must withdraw a required minimum distribution (RMD) annually, beginning at age 73. A QCD will count towards satisfying your RMD. For a QCD to count towards your current year’s RMD, funds must come out of your IRA by December 31st.
  • You can make QCDs to more than one nonprofit each year.
  • QCDs can be made from many types of IRAs (Traditional, Rollover, Inherited, SEP and Simple).
  • If you do itemize, you do not get to use the QCD donation as a deduction, as you have already received the tax break by not having to claim the distribution as income.
  • For more information on QCDs, please see the following links:

Instructions for donating a QCD from your IRA:

  • There is usually a form you have to fill out from your IRA Administrator, the financial institution that manages your IRA. It is best to contact them for the specific steps.
  • It is customary for the IRA Administrator to send a check directly from your IRA to the non-profit.
    • If you have an IRA Checkbook (where each check is considered a distribution from your IRA), you should be able to write/send the check on your own.
  • Information that you may need to provide your IRA Administrator:
    • Name: Corpus Christi House, Inc.
    • Type of Nonprofit: 501(c)(3)
    • EIN: 82-0511925
    • Address:
      • P.O. Box 9722 Boise, Id 83707 (preferable if P.O. boxes are allowed)
        or,
      • 525 S Americana Blvd Boise, Id 83702
    • Ask that they include your name on the form or check that is sent to Corpus.