Good Shepherd Lutheran Church

Stewardship

CONTRIBUTION OF STOCK OR MUTUAL FUND SHARES

If the Shares are held in a Brokerage Account

This is the preferred method for transacting a stock contribution to Good Shepherd. Have your broker transfer stock to our account with Scottrade, Inc as follows:

Account:	Good Shepherd Lutheran Church #356-37126;
DTC#:	0705
Broker	Scottrade; 14 Bureau Dr., Gaithersburg, MD 20878-1402, 301-926-1623.

Please inform Vicki Schmidt, Good Shepherd’s Business Manager, of your transaction in writing. Please also note which offering fund you would like your stock contribution to be applied to.

Once the shares of stock are transferred into our account, we will contact Scottrade to sell the shares at the market value. A check is usually received by Good Shepherd within 7-10 business days.

Stock contributions are recorded as a non-cash or gift-in-kind contribution. This means the net proceeds that the church receives from the sale of the stock will not appear as an offering on the contributor’s monthly statement of cash contributions. Instead, Good Shepherd will provide a statement which acknowledges receipt of the shares of stock. See the section below: “About your contribution statement from Good Shepherd. ”For tax deduction purposes, the value of the shares is the value as of the date you transferred the shares to Good Shepherd, not the actual proceeds Good Shepherd receives when the shares are sold. It is your responsibility to track this information, as Good Shepherd does not know what the value is on the transfer date.

Endorsing a Stock Certificate

If you are holding certificates and plan to give a certificate of stock to Good Shepherd, please do not sign over the certificate to the church. You and any other individuals named on the certificate must endorse the certificate, but do not put the name of Good Shepherd anywhere on the certificate (this makes it very costly to sell). Once the certificate is endorsed, please send it with a cover letter to Scottrade, Inc., containing the names and signatures of all parties shown on the certificate, and direct them to apply the certificate of stock to Good Shepherd’s account. A copy of your letter should also be provided to Vicki Schmidt, Good Shepherd’s Business Manager, for our records.

About Your Contribution Statement from Good Shepherd

Because of IRS restrictions on how we may/may not report non-cash contributions, such as stock transfers, Good Shepherd does not record stock contributions as a cash contribution on the contributor’s offering record. This means that your monthly statement of contributions will not show stock contributions. Once a stock transfer is processed, Good Shepherd provides the contributor with a Receipt of Stock Contribution which reports the contributor’s name, the date of the stock gift, and the number and name of the shares that are given. For information purposes, we provide the net amount realized by Good Shepherd and the fund in which the net amount has been directed; however, that amount does not represent an appraised value to be used by the contributor for income tax purposes. The monthly statement of contributions that you receive in the mail should be reviewed along with the Receipt of Stock Contribution for a total understanding of your financial giving to Good Shepherd for the year. Please be assured that when we review pledge results throughout the year, we look at both cash and noncash contributions from our membership. For additional information on how to report your contribution on your income taxes, please consult with your financial advisor. You may be required to submit a qualified appraisal on IRS Form 8283 at the time of filing your IRS Form 1040.

Donating US Savings Bonds

Good Shepherd is unable to accept US Savings Bonds which are made payable to another individual due to changes in tax and privacy laws and because of the fees associated with cashing the bonds. Our banking institution recommends that individuals who wish to contribute US Savings Bonds must cash them through their own private banking institution and then make a contribution to Good Shepherd in the form of cash or a personal check.

Questions?

If you have any questions, please contact Vicki Schmidt at 301-869-0607.

Last Updated: 04/11/08 07:44 AM