Supporting Mercersburg Through Gifts of Stock or IRA Rollover

Sunday, December 1, 2019

As the end of the calendar year approaches, consider two important charitable giving incentives that can help you support Mercersburg Academy while also saving on taxes.

Gifts of Appreciated Stock
If you own appreciated stock or mutual funds, you can gift them to Mercersburg Academy. By doing so you can take a charitable deduction for an amount equal to the value of the stock on the day we receive it, and you avoid any capital gains tax that you would have paid had you sold the stock. In this way, the tax savings can be much more significant than with a gift of cash.

Joe has a 50th Reunion in June and wants to make a special gift to honor that milestone and the special connections he's reestablished with his classmates. He bought shares of IBM back in 1980 for about $16 per share. It now trades for about $135 per share. He makes a gift of $10,000 to the Annual Fund, larger than he ever thought possible, for shares that originally cost him less than $1,200. Additionally, he pays no capital gains because the shares were gifted to Mercersburg and he receives a tax deduction for the full $10,000.

IRA Charitable Rollover
If you are a U.S. taxpayer and at least 70 1/2 years of age, you may make gifts to Mercersburg from your IRA without having to count those funds as part of your adjusted gross income. Consequently, you do not have to pay taxes on the gifted amount. Distributions, which count toward your required minimum distribution (RMD), must be made directly from the IRA trustee to Mercersburg, and the individual maximum is $100,000 per calendar year. This is a great reason to consider using your IRA (instead of cash) to make a charitable gift.

Jane, who is 71, has two children who attended Mercersburg and she credits their successful path in life to the excellent faculty here. She wants to recognize the importance of faculty while continuing her incredible 38 consecutive years of Annual Fund support. Jane notifies her IRA plan administrator to make a distribution directly to Mercersburg Academy in the amount of $30,000 to support an existing endowed teaching fund and to make her Annual Fund gift. She will continue to make gifts annually in this way every year to fulfil her goals. This gift counts toward her annual RMD and where the gift doesn't produce a tax deduction, she does not have to recognize the $30,000 as income.

Talk to Us: Find Out More
For more information on these or other giving options, contact Carolyn Griffin Yeager at 800-588-2550 or

Brokers and IRA administrators don’t always include donors’ names on stock transfers and IRA distribution checks, so if you’re planning to make a gift to Mercersburg Academy using an IRA or stocks, please let us know so that we can identify and recognize your gift promptly. And, please let us know if you want your gift used for a particular purpose.