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Procedures for Transferring Common Stock as a Gift to the Church

If the securities are on deposit with a brokerage firm, then notify your broker of your intentions. Your broker probably will need the following information:

The name and number of shares that you wish to transfer
The name and number of the account to which they are to be transferred …

This information can be obtained from the church treasurer, Dan Pence, through the church office at 301-585-8010.

If the stock certificate is in your possession, then do the following:

Date and sign the certificate on the back. There is no need to fill in any other information on the back.
Get a Relinquishment Letter form from the church office. Fill out the top of the form, indicating the number of shares and name of the security being transferred.

3. Take the stock certificate and the Relinquishment Letter to any branch of First Union National Bank. The closest branch to the church is at 8701 Georgia Avenue, Silver Spring, two blocks north of Colesville Road. Ask for a representative to notarize your signature of the Relinquishment Letter. Sign the Relinquishment Letter in the presence of the notary.

Note: If you are unable to go to the bank, then sign the Relinquishment Letter in the presence of a notary convenient to you and have the letter notarized. Then send the stock certificate and the Relinquishment Letter to the church, attention Church Treasurer. If you are unable to get to a notary, then notify the church secretary by telephone, and we will arrange for a notary to come to your home.

4. Ask the bank representative to deposit the security in the church’s First Union Securities, Inc. brokerage account shown above.

Notify the church treasurer (Dan Pence) so that he can alert the church’s broker to expect the transfer.

Tax Savings

Generally, you may deduct the full current value of the stock and avoid paying the capital gains tax that would be due if you sold the stock yourself. Furthermore, you may deduct the value of such gifts up to 30% of your adjusted gross income in any one year, and you may carry over any excess into as many as five additional tax years. Please check with your tax advisor for specific details in your case.

Confirmation of Gift Receipt

The church will receive confirmation of the deposit from First Union Securities, Inc. in about one week. After receiving confirmation of deposit, the Financial Secretary will issue a gift acknowledgment to you confirming (1) receipt and (2) the value represented by the gift for tax purposes. The value of the gift is determined as follows:

1. If the church sells the stock on the same day that it becomes registered in the church’s account, then the value of the gift will be the net proceeds received by the church as a result of the sale.

2. If the church does not sell the stock immediately, then the value is determined by multiplying the number of shares times the closing price of the stock on the day in which the stock is registered in the church’s account.

If you have any questions, please feel free to contact the church treasurer, Dan Pence, through the church office at 301-585-8010.