[Page 2] Gifts of stock make sense

Sometimes, a gift of stocks is the best way to make a charitable contribution. Gifts of stock offer many advantages.

For example: A donor decides to make a donation to a fund at the foundation. The donor owns ExxonMobil Stock and decides to donate 1,000 shares. Today, the shares are worth about $85 each, but they were purchased ten years ago for $19 each. If the donor sold the stock outright and then made a charitable gift, the donor would pay capital gains taxes on the profit taken. By gifting the stock, however, the capital gains taxes are avoided while the donor gets the opportunity to deduct the full value of the gift. Assuming a 33% tax bracket and 15% for long-term capital gains, the donor was able to avoid more than $7,000 in capital gains taxes while enjoying a hefty tax deduction of more than $28,000.

Always contact your financial advisor or CPA to fully understand the benefits of your particular charitable donations.Once you decide to give stock, the foundation makes it very simple and easy to complete. For more information, call us at 947-7071.

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