Year-end is a popular time when many persons consider making contributions to further the work of the Masonic Homes. If you have a choice, it's usually better to give appreciated stock than to give cash. Here's why: You receive an income tax deduction for the appreciated value, not just what you paid for the stock in the first place. In addition, because the Masonic Homes is a qualified charitable organization, it will be able to sell the stock and bypass any tax on the appreciation. A win for you; a win for Masonic Homes.

Consider the case of Bro. Bill who is planning to give the Masonic Homes $5,000. If he writes a check for this amount, it will cost him $5,000.

Let's assume, however, that Bro. Bill has stock worth $100 per share that he bought years ago for only $10 a share. If he gives 50 shares of this stock directly to Masonic Homes, the gift value will be $5,000, not the $500 he paid for these shares originally. In other words, his $5,000 gift will cost him only $500!

There are, of course, a few rules. First, you must have owned the stock for at least a year and a day prior to making the gift. Second, the value of the gift is determined by the stock's average trading price on the day the gift is made. Third, the resulting charitable contribution deduction from Federal income tax can be applied, on an itemized return, up to 30 percent of your adjusted gross income, whereas a cash gift is deductible to 50 percent. Fourth, if you are unable to use the full deduction in the year of the gift, you have an additional five years to use it.

As we enter the Holiday Season, you may want to consider the benefits of giving stock. Depending on your circumstances, a gift of appreciated stock can be an excellent way to stretch your giving power while making an important difference in the lives of those who have entrusted their care to the Masonic Homes. We encourage you to discuss this matter with your financial advisor.

You can also find out more about this subject ­ and other year-end giving opportunities at the Masonic Homes by contacting the Development Office at (717) 367-1121, ext. 33311 or (800) 599-6454. We are here to help you in any way we can.