Stock that has increased in value is one of the most popular assets used for charitable giving, once it has been held for more than one year. A stock portfolio is often among the most valuable assets you own—and one that can carry substantial capital gain, or appreciation in value. With careful planning, you can reduce or even eliminate federal capital gains tax while supporting our work’s mission.
As stock prices increase, so do the taxes you owe on the long-term capital gain, which are generally charged at a rate of 15 percent (0 percent if you are in the 10 and 15 percent tax brackets) through 2012. But when you donate publicly traded stock you’ve owned for more than one year to a qualified charitable organization such as the Anne Carlsen Center, you enjoy major tax benefits.
The income tax deduction for long-term capital gain property is limited to 30 percent of your adjusted gross income in the year you make the gift, but your excess deduction is deductible for up to five additional years.
Profile of a Giver of This Gift
- Do you have securities that you’ve owned for more than one year and are worth more than you originally paid for them?
- Do you want to avoid paying taxes on their appreciation?
- Can you afford to give up ownership of these securities?
- Would you like to support the Anne Carlsen Center mission?
Is This Gift Right For You?
You can also use stock to fund a charitable gift that provides you with life income, such as a charitable remainder trust, or leave us stock in your will or living trust. Your legal and tax advisors can help you determine whether one of these options is right for you.
Benefits of This Gift
- You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you had otherwise sold the securities.
- You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their original cost.
How to Make This Gift
If you have the physical securities:
- Hand-deliver them to us; or …
- Mail us the stock and stock power separately.
If you don’t have possession of the physical securities:
- Instruct your broker to electronically transfer your intended shares.
- Ask your broker to notify us once the transfer is complete.
- If you have stock losses:
- Sell the stock yourself to realize the loss and take any allowed deduction for tax purposes.
- Then generate a charitable deduction by donating the cash proceeds of the sale to the Anne Carlsen Center.
For More Information
We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to futher discuss your giving options.
For Additional Resource Information Click Here
The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.
No Comments (yet)