EPISCOPAL ENTITIES: EPISCOPAL DIOCESE OF MILWAUKEE

Gifts to religious organizations, such as individual churches or Episcopal- related entities within the Episcopal Diocese of Milwaukee, are encouraged by federal and Wisconsin tax laws. Many gifts, especially those to individual parishes, are in the form of cash. Increasingly, however, individual donors are finding that gifts of highly appreciated securities having a long-tem holding period are much better gifting vehicles. In fact, many donors are finding it is possible to make larger contributions than cash gifts would allow by using such securities.

Gifts of appreciated securities benefit Wisconsin donors in four ways: (1) The gift is first credited for the full market value of the securities. (2) The donor may then deduct this full amount for federal income tax purposes and receive a five per cent itemized deduction credit for Wisconsin income tax (within 30 per cent of adjusted gross income). (3) No capital gains tax is due on the increased value (the appreciation over cost) of the securities. (4) Federal and Wisconsin estate taxes are decreased.

Many parishes find it difficult to accept gifts of securities because they do not have ready access to knowledgeable people or brokerage accounts through which to dispose of the securities once they have been received. Trustees of Funds and Endowments, Inc. has made arrangements through a special account established at Charles Schwab to facilitate such transfers at a minimal cost to Episcopal organizations within the Diocese. To make a gift of securities to a particular entity, Trustees of Funds and Endowments, Inc. recommends one of the following methods for donors:

• A donor may send the unendorsed stock certificate and, under separate cover, send a signed stock power form executed in blank (no named transferee) to

                                               Charles Schwab
                                              411 East Wisconsin Avenue
                                              Milwaukee, Wisconsin 53202

• The donor may instruct a broker to transfer the securities from the donor's account to the Trustees of Funds and Endowment, Inc.’s account (account 3915-1735) at Charles Schwab DTC#0164.

Regardless of the method used, the donor should specify to Charles Schwab that the transfer is to be handled through

Trustees of Funds and Endowments, Inc. Account Number 3915-1735 and specify to which organization the gift is being made.

At the same time and in either instance, the donor or the donor’s agent must advise Jon P. Barsanti (Executive Director, Trustees of Funds and Endowments, Inc.) of the transfer by e-mail at endow@execpc.com, by telephone at (414) 224-0339, or by FAX at (414)224-0344.

The value of a donor’s gift of securities is established using the mean of the high and low stock quotations the day the gift passes to the Trustees’ control..

It is Trustees’ policy to sell securities so transferred as soon we have knowledge that the securities have been properly received in our account or notification of the transfer with instructions for the disbursements of the sales proceeds is received by Jon Barsanti, whichever occurs later. This policy is believed to be consistent with standard gift acceptance policies of most charitable organizations. A check will then be remitted to the entity to which the gift has been made generally three days later, upon the settlement of the sale. The donor should note that the charitable contribution value calculated for income tax purposes will, in all likelihood, differ from the amount of cash ultimately going to the receiving entity because of a small sales commission that inures to Charles Schwab, minor transaction fees paid to the stock exchange, and existing market fluctuations.

For more information on making gifts of appreciated securities, closely-held stock, life insurance, or other property, please contact Jon Barsanti as indicated above.

Copyright © Trustees of Funds and Endowments, Inc. All rights reserved.
Post Office Box 510348, Milwaukee, WI 53203-0061
Tel. (414) 224-0339 / Fax: (414) 224-0344
Email: endow@execpc.com
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