It's Raining Securities

Posted on Dec 14, 2020 by Jon Dize - Funding the Mission

The schools in our family of schools are raising more money this year than last year... you are all doing a great job! As Mark Twain may have said, "The news of charitable giving's demise is greatly exaggerated...."

However, just last week Lynn and I were asking ourselves, "where is the usual 'donation deluge' that we expect to see the first of December?" Well, we spoke too soon. It seems that this week is the week donors are starting to complete their charitable plans (with a few donors of $50,000 and $100,000 asking how they can best complete their gifts!) And yesterday (Wednesday), seems to be the time that their financial advisors are contacting us to complete stock gifts. We expect no less than 4 gifts of stocks or mutual funds this week alone.

Do your donors know that giving stocks and mutual funds at high levels (aka "Appreciated Securities") is an option? You may want to tell them! We have donors of $1,000 in stock as well as those in 6 figures, so more and more donors are making use of this option to fund SGO scholarships.

Why mention it to your donors (bulletin insert, email, mailed appeal, meetings in the narthex, school newsletter, etc.)?

  1. Historically, the data tells us that the amount of charitable giving at year-end is greatly influenced by the stock market valuations. Most of the major indices are at all-time highs...
  2. Donors bought the security at a price; the value increases; if they sell the security, they will have to pay taxes on the increase ("Capital Gains Tax")...
  3. But, if they donate it to the SGO, they should avoid the tax...
  4. And, they get to capture its high value, not the original purchase price, and avoid using money from their pocketbook or checking account...
  5. It is easy to do: they either go online and select "gift of stock or securities" and enter the needed information or complete our donation form and mail/email it. We then provide the transfer instructions for the donor to give to their financial advisor...
  6. Speaking of advisors, always encourage donors to consult with their own advisors to ensure gifts of securities will benefit their own unique situation.
  7. One last reminder, the stock needs to be in our account by 12/31, so don't delay!

Feel free to email or call us with any questions. Feel free to also copy/paste the points above and the promo below for a quick appeal.

P.S. LYBUNT UPDATE: our mailing to all SGO donors that gave last calendar year but not yet this year ("LYBUNT") is in the mail... and should be received by your donors soon. Our apologies in advance if the donor gives between the time we ran the database list and when they receive the letter, but we say good things about all of you, so they should still appreciate the note!

Image from TLSGOI.
Don't let this be your donors! Suggest funding SGO scholarships with appreciated securities!
Every week the staff of The Lutheran SGO of Indiana prays for a school in our family of schools. This week we are praying for the students, families, faculty, staff, and leadership of Emmaus Lutheran School, Indianapolis.
Lutheran SGO of Indiana Website