Gifts of Securities make excellent charitable gifts. 

Here’s how a stock contribution works:

Suppose you would like to make a $10,000 gift to your favorite organization. If you write a check for $10,000, you will receive a $10,000 charitable income tax deduction. If you are in a 35% income tax bracket and itemize your deductions, you will reduce your taxes by $3,500 ($10,000 x 35%). The net cost of your gift will be $6,500 ($10,000 - $3,500).

Now, suppose instead you donate $10,000 of publicly-traded stock purchased ten years ago for $2,000. First, just like a gift of cash, you may claim a $10,000 income tax charitable deduction, thus reducing your taxes by the same $3,500. In addition, you will avoid paying the capital gains tax you would have paid if you had sold the stock rather than giving it to charity.

If you sell the stock, you will realize an $8,000 long-term capital gain. If you are in a 15% capital gains tax bracket, you will pay $1,200 ($8,000 x 15%) in capital gains tax. However, by donating the stock instead, you will forever eliminate this potential tax liability.

By giving stock instead of cash, the net cost of your gift will be further reduced from $6,500 to $5,300!

CALL THE JEWISH FOUNDATION FOR MORE INFORMATION 374-0400

Before making charitable contributions, please discuss your options with your financial advisor.  He/she will be able to assist you in making the best choice given your personal situation.

Gifts of Stock

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