When you think about making a charitable gift, what comes to mind? Writing a check? Making an online donation? Supporting a special collection at your parish?
Those are all important ways to give. But if you own stocks, bonds, mutual funds, or other appreciated securities, you may have another option — one that can help you support a cause you care about while potentially providing valuable tax advantages.
Catholic Community Foundation (CCF) can help make donating appreciated securities a smart and meaningful part of your charitable giving.
Helping Generosity Make a Lasting Impact
For more than two decades, CCF has helped individuals, families, parishes, schools, ministries, and organizations steward financial resources in support of the Catholic community of South Central Texas.
CCF’s mission is to facilitate, receive, manage, safeguard, and grow investments while supporting organizations and donors aligned with the tenets of the Catholic faith. Its approach combines professional financial stewardship with investment practices rooted in Catholic values.
For donors, that means CCF can help connect generosity with the organizations and causes that matter most to them.
CCF provides several ways to make that possible.
Endowments
An endowment is designed to provide lasting support for a parish, school, ministry, cemetery, or other organization. The assets are professionally invested, and a portion is distributed to support the designated organization or purpose.
Donors may contribute to an existing endowment or establish a new one in their name, their family’s name, or in honor or memory of someone special. Because the principal is invested for long-term growth, an endowment can continue supporting a mission for generations.
Donor Advised Funds
A Donor-Advised Fund, or DAF, is a tax-saving charitable vehicle that offers donors flexibility in planning their charitable giving.
A donor makes a charitable contribution to the fund today, which may qualify as a charitable deduction in the year it is made, and can then recommend grants to qualifying charitable organizations over time. This can be especially helpful for individuals and families who want to be more intentional about their giving, support multiple organizations, or establish a family tradition of philanthropy.
Existing Funds
CCF also stewards existing funds that benefit parishes, schools, ministries, cemeteries, and organizations throughout South Central Texas.
Donors who already know the organization or cause they want to support may be able to direct their gift to one of these established funds. This provides an easy way to support a ministry that is already meaningful to them.
Investment Accounts for Catholic Organizations
CCF also works directly with Catholic parishes, schools, ministries, and organizations by providing professionally managed investment accounts.
These accounts allow organizations to responsibly steward their financial resources using diversified, professionally managed investments aligned with these principles. CCF handles many of the administrative and investment responsibilities, allowing ministry leaders to focus more of their time and energy on fulfilling their mission.
Together, these services allow CCF to serve both sides of charitable stewardship — helping donors give with purpose and helping faith-based organizations responsibly manage resources for the future.
Where Do Securities Fit Into Charitable Giving?
For donors who own investments that have increased in value, securities can be an important part of the conversation.
Instead of selling an appreciated stock and then donating the cash proceeds, you may be able to transfer the securities directly as a charitable contribution.
Examples can include:
- Publicly traded stocks
- Bonds
- Mutual fund shares
- Certain other marketable securities
Once the securities are received, the value of the gift can be directed to the charitable purpose you have selected.
Your gift might support your parish, a Catholic school, a ministry serving families in need, an existing endowment, or another organization close to your heart. You could also use appreciated securities to establish or contribute to a Donor-Advised Fund and recommend charitable grants over time.
In other words, the asset you give may be different, but the purpose behind your generosity remains entirely personal.
Why Consider Donating Appreciated Securities?
There are several potential advantages.
- You May Avoid Capital Gains Tax on the Appreciation
Imagine you purchased stock years ago for $10,000 and it is now worth $25,000.
If you sell the stock, the $15,000 increase in value may be subject to capital gains tax.
If eligible appreciated securities are donated directly to a qualified charitable organization instead, you generally do not recognize that capital gain on the donated property. This can make donating the asset directly more tax-efficient than selling it first and donating the proceeds.
- You May Qualify for a Charitable Deduction
For certain appreciated securities held longer than one year, donors who qualify may generally be able to claim a charitable deduction based on the securities’ fair market value, subject to IRS rules and individual limitations.
Because every donor’s situation is different, CCF encourages donors to consult their tax or financial advisor when evaluating these benefits.
- More of Your Asset Can Go Toward Your Charitable Goals
When appreciated securities are sold first, taxes can reduce the amount ultimately available to give.
By transferring the asset directly, you may be able to preserve more of its value for charitable purposes.
That could mean more resources for Catholic education, parish life, social services, seminarian formation, outreach programs, sacred spaces, or another cause important to you.
- It Can Be Part of Your Overall Financial Planning
Charitable giving does not have to be separate from financial planning.
For some donors, gifting appreciated investments can also be an opportunity to reduce a concentrated stock position, rebalance an investment portfolio, or use an appreciated asset to accomplish charitable goals rather than relying entirely on cash.
A financial advisor can help determine whether this approach makes sense within your overall financial plan.
- You Decide What Your Generosity Supports
Perhaps most importantly, donating securities does not mean giving up your ability to choose where your charitable dollars make an impact.
Through CCF, you can explore options to:
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- Support a favorite parish, school, or ministry.
- Contribute to an existing endowment.
- Create an endowment providing long-term support for an organization or cause.
- Establish or add to a Donor-Advised Fund.
- Support several qualifying charitable organizations over time.
- Honor or remember someone through a lasting charitable gift.
CCF helps connect the financial side of the gift with the mission you want that gift to serve.
It’s Easy to Get Started
Donating securities may sound complicated, but it doesn’t have to be.
- Start with a conversation with CCF. Tell the CCF team that you are considering donating securities and share what organization, ministry, or charitable cause you would like to support.
- Talk with your financial or tax advisor. Your professional advisor can help you evaluate the potential financial and tax benefits based on your individual circumstances.
- Arrange the transfer. CCF can provide the information your financial institution or advisor needs to transfer the securities.
- Put your gift to work. Your contribution can then be directed according to the charitable purpose or giving vehicle you have selected.
Before You Sell, Consider Giving
Sometimes the best way to increase your charitable impact isn’t simply deciding how much to give. It is considering what to give.
If you own stocks, bonds, mutual funds, or other appreciated investments, a conversation with your advisor and Catholic Community Foundation may reveal a giving opportunity you hadn’t previously considered.
A security that has grown in value over the years could become an investment in something even more meaningful — a stronger parish, a thriving Catholic school, a vital ministry, or a legacy of faith and generosity that continues for generations.
Have securities you are considering donating? Start a conversation with Catholic Community Foundation.
Call 210-732-2157 or email ccfinfo@ccftx.org to explore your giving options.
