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Gifts
of Stock:
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charitable-minded people are aware that it can be beneficial
to both the donor and the charity when gifts are made using
appreciated assets. One class of assets which is very easy to gift, is stocks. |
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When considering
charitable gifts, a donor may wish to consider alternatives
to simply writing a check or making a large cash gift.
Major gifts can take many forms, each offering different tax and
giving advantages. Often, by making gifts of appreciated assets
like stock, a donor can make the same dollar commitment but forward
more net dollars to the foundation AND receive a larger tax deduction.
Here’s an example.
If you sell a block of stock for $50,000, which you paid $10,000
for years ago, you would pay a capital gains tax on $40,000. For
most of us, that tax bill would be $6,000. That leaves $44,000 to
gift to the Marquette General Foundation. The donor would obtain
a $44,000 income tax deduction. While that is a substantial gift,
it can be improved upon with little extra work.
Let’s say you gift the stock to the
Marquette General Foundation, and the foundation then sells it.
The foundation is a qualified charity, and accordingly, does not
have to pay capital gains tax. Once the foundation received your
gift of stock, we would sell it for the same $50,000. This entire amount would support a donor's wishes.
While this might be a little more work, both you and the Marquette
General Foundation benefit by an extra $6,000. Most of us would
rather see the foundation receive that money instead of Uncle Sam.
Most gifts of stock are made simply by electronically transmitting the gift
to the foundation or their brokerage agent. In order to keep the
process efficient and to maximize the benefit to all, please discuss
this with Planned Giving/Major Gifts Manager Jim LaJoie in the Marquette
General Foundation.
There are ways to tailor the gift to meet your needs while maximizing
the gift.The Marquette General Foundation encourages all donors to work with trusted advisors when making philanthropic decisions..
The Foundation is grateful for your interest and is here to assist you.
For more information on stocks as charitable gifts, contact Jim
at 906-225-3431, 361-3431 (cell) or by email at jlajoie@mgh.org.
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