AICR is fortunate to have many generous supporters. Most individuals support our cancer research and education programs by sending checks. In view of significant gains in stock values that began in 2009, many professional advisors are recommending that donors who give to charity should consider making a gift of appreciated securities (link to: https://www.aicr.org/planned-giving/stocks-and-bonds.html).
We would like to pass along an important Tax Planning Tip from Marc Carmichael, Attorney at Law and Publisher of Chari- table Giving Tax Service.
Investors who own marketable securities—stocks and bonds— that have gone up in value have a tremendous opportunity to increase their support for worthwhile organizations.
By giving stocks instead of writing a check you can receive a charitable deduction based on the full fair market value of the stocks, not just what you paid for them. The stocks must have been held long-term (more than one year) in order to deduct the “paper profit.” For example:
Emily happens to own securities worth $1,000 that she bought 15 years ago for only $200. If Emily sells the stock she will have a capital gain to report of $800 and a capital gains tax to pay of $120 (15% x $800). So the stock is really worth only $880 to Emily ($1,000 minus the $120 capital gains tax burden).
But if Emily contributes the stock, the organization will keep the entire $1,000 free of capital gains tax. And Emily will receive an income tax charitable contribution deduction for the full $1,000, which saves her taxes totaling $280 in her 28% tax bracket. It is fair to say that her $1,000 gift will actually cost her only $600 ($880—$280 of taxes saved).
If you have questions about making a gift of stock, please contact Ann Worley or Richard Ensminger in our Office of Gift Planning at 1-800-843-8114 or email us at email@example.com.