Gifts of Stock

 

Stock-Gifts

Support the Club and save on capital gains taxes

 

The gift of an asset, often common stock or mutual fund shares, is a valuable way to make a contribution to the Club and receive tax benefits based on the value of the asset(s).

For example, suppose John and Ellen had 300 shares of XYZ Corporation stock that they had purchased at $12 a share some years ago. The current value in today’s market is $36 a share. If they sold the stock in the market, they would have a taxable, long-term capital gains on the difference between their cost and what they would receive from the sale ($36 minus $12 = $24 capital gains per share; 300 shares X $24 = $7,200 in capital gains).

They could sell the stock, pay the tax on the capital gains, and either keep or donate the proceeds.

If, instead of selling the stock, John and Ellena gave the 300 shares to their charity, they would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) as a charitable gift. By donating the stock, the charity receives more than it would receive if John and Ellen first sold the stock and then donated the proceeds after deducting the capital gains taxes.

Also, John and Ellen receive a greater tax deduction by giving the stock directly to the charity and avoiding the capital gains tax.

For more information about donating stock and for stock transfer directions, please contact the Chief Development Officer by phone at (603) 883-0523 x 211 or by email.