Gifts of Stock and Mutual Funds

Appreciated securities—stocks, bonds, mutual fund shares—are excellent options to consider when making charitable gifts. Not only do you receive a charitable donation, additionally, there is the potential to reduce your tax bill by not owing Capital Gains tax.

The Impact of Gifts of Stock or Mutual Funds

To illustrate the impact you can make with a gift of stock or mutual fund, please consider the following for a donor in the 28% tax bracket:

Cash Gift

$10,000: Charitable donation (cash gift)

-$2,800: Federal income tax deduction (28% marginal income tax bracket)

$7,200: After-tax ‘cost’ of gift*

Gift of Appreciated Stock

Tax benefits can be increased by donating appreciated securities instead of cash. Consider a gift of stock with a $10,000 current market value that was purchased years ago for $2,000:

$10,000: Charitable donation (appreciated stock, cost basis of $2,000)

-$2,800: Federal income tax deduction (28% marginal income tax bracket)

-$1,200: Capital Gains tax not paid (15% long-term Capital Gains tax rate, applies if stock is sold)

$6,000: After-tax ‘cost’ of gift*

*Additional state income tax savings may be available, depending upon donor’s state of residence.

How to Give a Gift of Stock or Mutual Funds

A gift of appreciated securities must be transferred directly to CLC to secure all available tax benefits. Please contact Stephanie Manley, Director of Philanthropy, before requesting the transfer with your broker so that we can assist with acceptance of the transfer.

All DTC Eligible Securities:

Bank of New York

DTC Participant #901

Internal Account #329224

Christian Living Communities Taxpayer ID: 45-5475166

Stephanie Manley

Director of Philanthropy

Please contact Stephanie before requesting the transfer with your broker so that we can assist with acceptance of the transfer. You can reach Stephanie at 720-974-3675 or smanley@clcliving.org.