The Montgomery Funds cc: The Church of Jesus Christ



Teaching Tool 8 - Tithing Share Transfer ExamplePersonal Finance: Another PerspectiveMarch 18, 2019Following is an example of the type of document I use to donate shares of appreciated mutual funds to the Church of Jesus Christ of Latter-day Saints. The process is similar regardless of the charity chosen.The most important point is to have appreciated mutual funds or stocks in taxable accounts to donate. If you have losses in taxable accounts, it is better to sell the shares and take the losses, as you can write off up to $3,000 each year of securities losses on your income taxes. There is no benefit, other than time, of donating shares or mutual funds which have lost value.One of the nice benefits of donating appreciated mutual/index funds and stocks is that you can transfer partial shares, i.e. .967 shares, to your charity. In your email, tell the broker how many shares you wish to donate, and then include the price from the WSJ or your app for your tax records. In addition, if you are donating to the LDS church, you can specify a dollar amount for tithing, fast offering or missionary as well. Anything you can do on a tithing slip you can do via appreciated securities.The process I use is this. First, I call the broker or mutual fund company and get the account number of the Corporation of the President of the Church of Jesus Christ of Latter-day Saints. This is critical as you must transfer the shares to the correct account.Second, I give the broker or mutual fund company verbal instructions as to the number of shares to be transferred and as of which date; the account from which the shares are coming from; and the account to which the shares are to be transferred (i.e. the church account number). Third, I prepare a confirmation fax, similar to the account below, which confirms the same information as discussed above. In addition, this fax also includes what the donation is to be used for, i.e., tithing, fast offering, ward missionary fund, etc., and your ward and stake. Then if it is a joint account, I have both individuals on the account, in my case my wife and myself, sign the document and fax it to the broker or mutual fund company. In addition, I also fax it to the Finance Department of the Church, so they will know to look forward to the transfer of shares. They do not get the name from the Mutual Fund company of the donation.After the shares are transferred, you will receive, within roughly a month, a “Donations in Kind Receipt” from the Church or charity. Keep this form, along with a copy of your fax for your income tax receipts. You will also receive a copy of the transfer document from your broker or mutual fund company. Check these together to make sure they match.At tithing settlement, please note that your donation will not be included on your annual contributions sheet from your ward. It will, however, be recorded in heaven and in the records at Salt Lake. Below is an example of a sheet that I used recently. July 21, 201XBrokerage/Mutual Fund Companycc: The Church of Jesus ChristAddressof Latter-day SaintsCity, State ZipPhone: 801-240-2554Fax: ZZZ-ZZZ-ZZZZFax: 801-240-2202Email: Jason.covington@email: Donationsinkind@Attention: Kris Maxfield/Jason Covington (this was the person I talked to with the verbal instructions)This is to confirm the transfer in-kind from our account, called in today at 11:34 a.m. MST (state the time you called the transfer in to the broker/mutual fund company), from:Account Names Account Number (XX-XXXXX)Of a donation to the following account:The Corporation of the President of the Church of Jesus Christ of Latter-day SaintsAccount number: 2517-6162 (you can call the church for this number)For _x,xxx.xxx_ shares at tonight’s NAV of $xx.xx (roughly $x,xxx.xx):from (Fund Name, i.e. S&P 500 Index Fund Select Shares (SWPPX) ) This is a donation of $x,xxx.xx from (your name) to be used $x,xxx for tithing, $x,xxx for fast offering, and $x,xxx for your ward Missionary fund. Please call when this transaction is completed._______________________Your NameYour AddressYour WardYour StakeDisclaimerThe purpose of this material and this class is to help you get your financial house in order and to help you on your road to financial self-reliance.? If there are mistakes in this material, please bring them to our attention, and we will correct them in upcoming versions.? The teacher, and BYU, specifically disclaim any liability or responsibility for claims, loss, or risk incurred, directly or indirectly, by using this material. ................
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