Support your favorite charity & save on capital gains taxes
Do you own stock that’s increased in value since its purchase or have clients who do? If you or your clients have owned the stock for at least one year, there is a unique opportunity for philanthropy.
When someone donates securities to Boys & Girls Clubs of Weld County, they receive the same income tax savings (if they itemize) as if they wrote BGCWC a check directly, but with the added benefit of eliminating capital gains tax on the transfer.
Making a gift of securities to support our mission is as easy as instructing a broker to transfer the shares or mailing the physical certificates and a stock power to BGCWC in separate envelopes. (Tip: Using separate envelopes protects the gift— the certificates will not be negotiable without the stock power.)
How does it work? A stock purchased more than one year ago for $10,000, which has appreciated to $25,000 today, would trigger $2,250 in capital gains tax if sold ($15,000 X .15 capital gains tax rate). On the other hand, donating the stocks to BGCWC would generate a $25,000 income tax charitable deduction, and $0 capital gains tax.
Using assets other than cash also allows for more flexibility when planning a gift. For example, if you or your client aren’t ready to give up these assets during lifetime, a gift of securities through a will or living trust allows for the flexibility for the donor to change their minds at any time and continue to receive dividends and participate in shareholder votes; the securities are still the property of the owner if needed for other expenses.
BGCWC staff are available to work with you to help you secure your clients' financial future, plan for tomorrow, and receive maximum benefits today. Instructions for Giving Securities >
***This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact individual results. ***