The gift of an asset, often common stock or mutual fund shares, is a valuable way to make a contribution to Nature Consortium and receive tax benefits.
Advantages to you, if you donate shares to a nonprofit instead of selling them:
- • You would not incur any capital gains.
- • You would be able to deduct the current value of the shares as a charitable gift.
- • You would ensure the nonprofit receives more than it would receive if you first sold the stock and then
donated the proceeds after deducting the capital gains taxes.
- • You would receive a greater tax deduction by giving the stock directly to the nonprofit and avoiding
the capital gains tax.
For example, say you purchased 300 shares of ABC stock, some years ago, at $15 a share. Now say the current value is $36 a share. If you sold the stock in the market, you would have a taxable, long-term capital gains on the difference between the cost and what they would receive from the sale ($36 minus $15 = $21 capital gains per share; 300 shares X $21 = $6,300 in capital gains).
If Shares Sold
If Shares Donated
|Tax on Gain||$1,575||$ -0-|
|Income Tax Deduction||$ -0-||$10,800|
|Income Tax Saved||$ -0-||$3,100|
|Gift Value to NC||$ -0-||$10,800|
(Above assumes shares owned for more than 12 months, donor is in 28% tax bracket, 20% gains tax rate and 5% state income tax rate. Tax rates may vary from state to state.)
How to Make Your Gift of Stock
Making a gift of stock to Nature Consortium is easy! Before you transfer stock, please contact us at firstname.lastname@example.org or (206) 923-0853 and let us know about your planned stock transfer and the following info:
- Your name
- Name of stock and approximate number of shares
- Estimated date of transfer
- Your brokering firm and account representative’s name and direct phone number
This information is essential to correctly processing your gift, and making sure that Nature Consortium does not incur additional broker fees.
Questions? Email email@example.com or call us at (206) 923-0853.