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.
Recent gains in The Dow make this a great time to make a gift of appreciated securities such as stocks to Cardinal Stritch University.
With the current rise in the stock market, many investors are likely to own shares that have substantial gains. There may be significant tax benefits to directly donating these stocks instead of cash.
By transferring appreciated stock directly to Cardinal Stritch University 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 $20,000 to Cardinal Stritch University.
You own $20,000 worth of stock which you purchased for $5,000 five years ago.
If you sold the stock then donated the $20,000 cash you would receive a $20,000 charitable deduction, but you must report the $15,000 capital gain on the stock ($20,000-$5,000=$15,000).
The $15,000 gain will be taxed at 15% resulting in a $2,250 loss to taxes.
Alternately, you could donate appreciated stock of approximately $20,000 directly to Cardinal Stritch University. You get the same $20,000 charitable deduction and avoid any tax on the capital gain.
However, it is important to know that you should 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:
Rob Buckla at (414) 410-4201 or email@example.com
Chris Lange at (414) 410-4207 or firstname.lastname@example.org
Cardinal Stritch University Agent: Robert W. Baird and Company
Contact: Kathy Beronja at (414) 765-3522
Stritch Account at Baird: 19735985
Stritch's tax identification: 39-0806196
Your gift is tax deductible to the extent allowable by law. Please consult your tax adviser when feasible.
You may deduct the current fair market value as a charitable gift and completely avoid any capital gains tax on the appreciation.
For questions or transfer information regarding gifts of stock, contact Kurtis Wier at (414) 410-4924 or email@example.com.
For other ways to discuss transfer of other assets, contact Rob Buckla (414) 410-4201 or firstname.lastname@example.org or Chris Lange (414) 410-4207 or email@example.com.