Donate: Planned Giving - Giving Now, Appreciated Securities
Gifts of appreciated securities held long term are one of the best ways to maximize the value of a gift and minimize the after tax cost. Donors of appreciated stock receive a tax deduction for the full fair market value of the stock on the date of gift and pay no capital gain tax on the appreciation. A charitable contribution deduction of up to 30% of adjusted gross income is available, with carryover for up to five years for any unused deduction.
 | Case Study | | | Situation | Assets have increased in value since you bought them, but you are uncertain about their future as a viable investment. | | Gift Plan Solution | Donate securities “out of market” to preserve cash, avoid capital gains tax, generate current income tax savings and make a significant charitable gift. | | For Example | Let’s say you are in the 28% income tax bracket and own securities currently valued at $30,000, which you purchased many years ago for $7,500. You contribute the securities to Maryknoll Lay Missioners and realize a $30,000 charitable deduction that saves you $8,400 in income taxes (28% of $30,000). In addition, you avoid the potential capital gain tax on your $22,500 paper profit for a further savings of $4,500 (20% of $22,500). Therefore, the net cost of the gift of $30,000 of appreciated stock is $17,100 ($30,000 less $8,400 less $4,500). In other words, the cost of the gift is only 57% of the face value of the gift of securities. | Click here for transaction forms |
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