Security Donations

Donations of Securities to Asbury

If you have securities (stocks, bonds, or mutual funds) that have accumulated long-term capital gains, you may want to consider donating some of them to Asbury instead of writing a check. There are two tax advantages in doing so.  First, assuming you itemize deductions on your Form 1040, you may deduct the full market value on the date of the donation, and, second, you avoid paying any tax on the long-term capital gain.   These advantages do not apply to U.S. savings bonds or to short-term (less than one year) gains.

There is an IRS deduction ceiling of 30% of adjusted gross income for donated long-term securities in any one tax year (you can carry any excess over for next year’s return).  Also, if your total non-cash donations exceed $500 for the year, you must fill out and file Section A of IRS Form 8283 with your tax return.  Asbury cannot offer individual tax and legal advice, so you should consult your tax or legal advisor before making any decision regarding these items.

If you decide to make such a donation, you will fall into one of the following categories:

  1. You are currently a client of Morgan Stanley Smith Barney, as is Asbury.  Sign a journal form to authorize your broker to move your shares to the Asbury account.
  2. You have shares held at another brokerage firm.  Contact your broker there to sign the appropriate forms.  Some firms may require you to take possession of the stock certificate; if so, go to 3.
  3. You have possession of the stock certificate or bond. Take it to Morgan Stanley Smith Barney and sign a security waiver to deposit it into Asbury’s account.

Asbury’s Financial Advisor at Morgan Stanley Smith Barney is Don Friedman, telephone (505)889-2885 or 1-800-776-5973, and fax (505) 889-2858.  They  are located just south of Coronado at 6701 Uptown Blvd, Albuquerque, 87110.

You also need to contact Asbury’s  Office Administrator, to get the security sold from Asbury’s account, designate the use of the proceeds, and obtain the proper IRS documentation from the church.