Giving long-term appreciated stock or mutual fund shares offers two-fold tax savings:
- You avoid paying and capital gains tax on the increase in value of your stock.
- You receive an income tax deduction for the full fair-market value of the stock on the date of the gift.
- You may deduct up to 30% of your adjusted gross income for an additional 5 years. The carry forward provision allows you to use the deduction in future years, spreading your deduction over six years potentially.
Other benefits of making gifts or pledge payments with appreciated securities:
- Such a gift may not impact your income stream as much as a gift of cash.
- Using securities may allow you to maximize the gift you wish to make.
- The gift process (electronic transfer in most cases) can be handled easily by your broker and LCA's Financial Office.
An example:
If you bought stock many years ago for $5,000 and it is now worth $15,000, a gift of that stock to LCA would result in a charitable deduction of $15,000. In addition, you would permanently avoid capital gains taxes on the $10,000 of appreciation.
Important: Before transferring your gift, please contact LCA at:
Douglas Monda
dougm@lcalions.com, Tel: (678) 325-6888
and provide the following information:
- Your name
- Broker's name (individual and company) and telephone number
- Description of security issue and number of shares
- Gift designation (e.g. Capital Campaign, Athletics, Fine Arts, Memorial Fund etc.)
It is important that you contact the financial office before donating securities so that we can properly credit your gift.
For your information, LCA's tax ID # is 58-222-7554. Please ask your stockbroker or custodian to provide the donor's name at the time of the transfer. Our brokerage account is at Bank of America Investment Services.
Thank you for your generosity. We will be in touch with you as soon as we receive the transfer.
