A gift of long-term appreciated securities, either publicly traded or from a closely held company, may provide you with greater tax advantages than a gift of cash.
By transferring appreciated stock directly to St. Joan Antida High School you can double up on tax benefits:
1) the charitable deduction plus
2) avoiding tax on the appreciated value of the donated stock.
You want to donate $10,000 to St. Joan Antida High School.
You own $10,000 worth of stock which you purchased for $1,000 five years ago.
If you sold the stock then donated the $10,000 cash (instead of the stock directly), you would receive a $10,000 charitable deduction.
However, you must report the $9,000 capital gain on the stock ($10,000-$1,000 = $9,000 capital gain).
The $9,000 gain will be taxed at 15% resulting in a $1,350 loss to taxes.
Alternately, you could donate appreciated stock of approximately $10,000 directly to St. Joan Antida High School. You get the same $10,000 charitable deduction and avoid the tax on the capital gain.
It is important to know that you must have held the appreciated stock for more than one year in order to deduct the full market value.
For more information or make a gift of securities, please contact:
Joel Cencius, Director of Development and Communications at (414) 274-4710 or firstname.lastname@example.org.