Making a gift of appreciated securities - stocks, bonds and/or mutual funds that have appreciated over time - is easy and is one of the most tax-efficient ways to give to a charity. Because the securities are donated rather than sold, you don’t have to pay long-term capital gains on your increase and you get a full donation for the market value of the shares at the closing price on the day you donate.
For instance, if you donate $5,000 to Trees, Water & People you can save approximately $2,350 in taxes if you donate via a gift of stock or mutual funds rather than cash.
|Sell $5,000 in stocks/mutual funds and donate the cash||Donate $5,000 in stock/mutual funds|
|Total Tax Paid||$700||$0|
|Total Tax Saved||$1,419||$2,350|
|After tax "cost" of donation||$3,581||$2,650|
|*Assumes a 28% tax bracket.|
If you have a specific question, please contact Diane Vella, TWP Finance Director at 970-484-3678 extension 22 or email@example.com.
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