Giving stock or securities to United Way
of Central New York is a smart way to invest in the 105
programs
in United Way’s Community Program Fund. Giving appreciated
stock may allow you to bypass capital gains tax as well
as donate a gift larger than you thought possible. You
can also
benefit from donating proceeds from a stock that has decreased
in value. The process of transferring stock to United Way
of Central New York is simple.
What Are The Benifits of Giving Stock?
- Receive a charitable income tax deduction for the
market value of your donation.
- Eliminate capital
gains taxes.
- Conserve cash on hand.
- Support your community through
United Way of Central New York.
Will a Stock Gift Work Best for
Me?
In an example of an especially generous gift,
let’s
assume a gift to United Way of $10,000 to help people
in our community. You need to determine the most advantageous
method of giving, choosing between payroll deduction,
check, or gift of stock. Below you will see the tax advantages
represented by a stock that was purchased for $2,000
and now valued at $10,000—representing an $8,000
capital gain. If you sell the stock, you will realize
the capital gain, but if you donate the stock, you
avoid the capital gain. The chart below outlines the
significant
tax savings made possible through a gift of stock.
Example
| |
Give stock as gift |
Give gift as check |
Sell stock, give proceeds |
| Gift Value |
$10,000 |
$10,000 |
$10,000 |
Income Tax
(Shown at maximum rate) |
$3,960 |
$3,960 |
$3,960 |
Capital Gains Tax
(example based on $8,000 gain in stock value
x 20% capital gains tax rate) |
$1,600 saved |
N/A |
$1,600 |
| Net Tax Savings |
$5,560 |
$3,960 |
$2,360 |
What Can I Donate??
- An appreciated stock that you have owned for more
than one year provides the best tax benefits.
- You can
also donate proceeds from a stock that has decreased
in value. You will receive a charitable deduction,
plus a capital loss deduction.
Important Note on Valuation
The date of your gift is the day the stock passes from
your control. For United Way gift crediting and accounting
purposes, the value is the mean between the high and
low quoted selling price of that day. Your gift will
be acknowledged by United Way with the valuation of your
gift. Please adhere to IRS regulations for your income
tax filing purposes. Your broker will also be able to
provide you with the precise value of your stock at time
of transfer.
More Information
The following materials are available:
For more information
contact Betsy
Foote, Vice President of Finance and Operations at
315-428-2205
|
