PND (2/15/2000) -- Donations of Stock to Religious Congregations on the Rise

As the high-tech boom in the U.S. continues unabated, churches and other charities increasingly are receiving gifts in the form of shares of stocks issued by technology companies, the Los Angeles Times Reports.

No one group tracks gifts of stock to charities nationwide, but for many congregations such contributions are outpacing the increase in overall donations. In fact, it is not unusual for officials of large congregrations to have relationships with money managers or brokers who handle pledges of stock. In such cases, donors generally call their brokers, who transfer the shares to whatever investment firm is handling the congregation's investments. Religious organizations say that upon receiving donations of stock, they almost always sell the shares immediately, opting not to play the market.

Donating stock has positive tax implications for the donor: no capital gains taxes in addition to a tax deduction. And congregations on the receiving end don't pay capital gains either.

Some theologians see the move toward donating stock instead of cash as a fundamental break with religious tradition in America. The practice, they say, is closer to what occurred in medieval Europe among wealthy landholders.

"When land was the equivalent of stock, you gave monks land — and the revenues from it — instead of cash," said Andrew Brown, author of "The Darwin Wars'' and an expert in religious trends. "It's a pattern most common during periods when you have seriously rich people."

Huffstutter, P.J. "More Stocks Are Ending Up on Collection Plate." Los Angeles Times 2/15/2000.

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