It is our desire to offer you every advantage and convenience in making your charitable gifts. Due to attractive tax advantages, many people are interested in making gifts of apreciated stocks and mutual funds.
The fundamental gain from donating appreciated stock arises from the fact that the current market value of the stock can usually be deducted from income for tax purposes. Each person’s tax situation is unique, so it is important to consult your tax advisor before deciding to donate stock
The following example shows the theoretical value of donating appreciated stock or mutual funds:
| Target donation: |
$500.00 |
| Assumptions: |
Historical cost of stock: $10 per share
Current market value of stock: $50 per share
Donor’s tax rate: 25%
|
| Cash donation |
Deduction: $500 |
Cost: $375 ($500, less value of deduction @ 25% tax rate) |
| Donate 10 shares of stock directly to OCC |
Deduction: $500 |
Cost: -$25 ($100 historical cost of stock, less value of $500 deduction @25% tax rate, or $125) |
If you're interested in donating stock to Overlake or would like more information on this or additional ways to contribute other financial instruments or property, please e-mail Liz Wisham in Overlake's Finance Office or call 425.284.2525.
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