Preserving the Dharma for
As a service for you, the information on these pages are
to inform you about setting up a trust or will and the tax benefits that planned
annual giving brings to benefactor, in USA or other countries with similar taxt
|Gifts of Stock
portfolios include stocks, and many donors find it convenient to use stocks
as a way of making their gifts to their favorite charitable organization.
So if you're planning a gift, have a look at your stock portfolio. Those
that have appreciated in value allow you to be able to potentially
make a gift much larger than what you originally planned and you will
benefit from the tax savings as well.
How does this Double Tax Break work? First of all, it's important to remember
that any stocks that have appreciated in value from what you originally
paid for them will be subject to capital gains tax at the time
In making a gift, if you were to sell the stock and use the proceeds as
your donation, you would be forfeiting a hefty amount in capital gains
tax. Instead, by donating the stock itself instead of the proceeds from
the sale of the stock you will avoid capital gains tax altogether, amounting
to substantial cash savings for you. And the full value of the stock will
be available to use as a gift and consequently the value of the charitable
deduction you claim will be higher.
Gifts of stock have become increasingly popular for donors of all ages:
- The young donor saves through both the charitable deduction and the
hard cash he or she is freeing up.
- The middle-aged donor can create a charitable remainder trust (CRT)
with donated stock and with the income received from such a CRT is able
to fund his or her child's or grandchild's education.
- The retired donor escapes the risks of the market and by establishing
a life income gift with a charitable organization, can receive yearly
payouts, often larger than the return they were receiving on the stock.
We'll be glad to assist you, your attorney, and/or tax advisor
in pursuing this further. Please call us today.