Give appreciated securities to Volunteers of America and you shall receive -- a tax break. Whether it's 100 shares of blue-chip stock or a new high-tech gadget, our government does indeed allow you to deduct these gifts as charitable donations. Moreover, you also avoid capital gains tax on the transfer.
This double benefit means that you can leverage a larger
donation by using appreciated securities rather than cash to make your gift.
Here's how it works:
Assumptions:
Donor in 33% Income Tax bracket; Capital
Gains Tax rate 15% |
 |
$10,000
Cash
|
$10,000
Stock
Cost Basis $5,000
|
$15,000
Stock
Cost Basis $7,500 |
Charitable Deduction |
$10,000 |
$10,000 |
$10,000 |
Tax
Savings @ 33% |
$3,300 |
$3,300 |
$4,950 |
Capital Gains Tax Saved |
$0 |
$750 |
$1,125 |
Net
Cost of Gift |
$6,700 |
$5,950 |
$8,925 |
The extra tax saved by using appreciated securities instead of cash to make a $10,000 gift is clear. Now look at the results for the $15,000 gift of securities. With total tax savings of $8,925, it costs you just $2,225 more to make this contribution than the $10,000 cash gift ($8,925 - $6,700) -- and to deliver 50% more benefit to Volunteers of America.
We welcome gifts of publicly traded stocks, bonds, and mutual fund shares. Some donors own stock in closely held corporations; click here to learn about using those assets to make a gift. The securities you use to make your gift must have been held by you for more than one year to be fully deductible.
Securities fluctuate in price - how will my gift be valued?
We take the average of the high and low prices for the security on the date of its transfer to us. If the high bid was $80 and the low was $70 on the day you made your gift, your gift will be $75 per share.
If the stock you donate is held by your broker, the gift date is the day the stock reaches our account. If you hold the certificates yourself and mail them to us, the gift date is the postmark date on the envelope.
Donors of mutual fund shares use the fund’s net asset value on the day the shares reach our account.
Is it difficult to transfer securities?
Not at all, and we can help you through every step of the process. Click here for all the details.
Creative plans for securities gifts
Use your gift of appreciated securities to fund a life-income gift at Volunteers of America like a charitable gift annuity or a unitrust. Pay no upfront capital gains tax on the transfer, and receive lifetime payments from your gift plan that equal or surpass the dividends the securities are paying now. The result? You make a gift to Volunteers of America while diversifying your portfolio and securing a stream of income.
Donors who have contributed securities:
Philip and Nell Boals
"Once a year, we donate highly appreciated stock to several charities in order to spread it around. It is most advantageous to give stock because we avoid capital gains and more can go to charity," says Mr. Boals, who retired from the railroad in 1960.
Read more...
John Hiller
John encourages others to make a planned gift to Volunteers of America, Utah. "Do it! You won't regret it. It's not an easy decision to give today while you can still see the money. It requires reflection. But there is an incalculable return. It will enrich your life in ways you can't imagine. When you make a planned gift it feels so good, and over time, the return on giving is tremendous."
Read more...
For more information
Email us, complete the personal illustration form, or call us at 1-800-899-0089, ext. 5073 so that we can assist you through every step of the process.
Office of Planned Giving
1660 Duke Street
Alexandria, VA 22314-3427
1-800-899-0089, ext. 5073 | Fax: 703-341-7070
E-mail: rimbach@voa.org
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