Making a gift of appreciated securities (stocks, bonds or mutual funds) to Hillel is easy and has special tax benefits. When contributing appreciated securities held for more than one year:
- Hillel receives a gift equal to the market value of the securities.
- You can take a charitable tax deduction equal to the market value of the securities.
- You avoid paying any capital gains tax.
- You remove the value of the securities from your taxable estate.
As with other outright gifts, your gift of stock may qualify you for membership in Hillel's
Renaissance Society.
Example:Rather than giving a gift of cash to Hillel, you donate stocks that you purchased five years ago for $2,500 that are now worth $10,000. You can take a federal charitable tax deduction of $10,000, and avoid paying any capital gains tax, which saves you a total of $4,600 in federal income tax. So, your $10,000 gift costs you only $5,400!
| |
Option A:
Give Stock Shares Directly to Hillel. |
Option B:
Sell Stock and Give Hillel Cash Proceeds. |
Option C:
Make $10,000 Cash Gift to Hillel. |
| Gift value to Hillel |
$10,000 |
$10,000 |
$10,000 |
| 20% long-term capital gain tax avoided |
$1,500 saved |
$1,500 paid |
N/A |
| Ordinary income tax savings (from $10,000 charitable deduction, assuming a 31% tax bracket) |
$3,100 |
$3,100 |
$3,100 |
| Net tax savings* |
$4,600 |
$1,600 |
$3,100 |
| Cost of $10,000 gift* |
$5,400 |
$8,400 |
$6,900 |
* Excludes any applicable state income tax savings.
Given the volatility of the stock market, now may be the best time for you to make a gift of securities that have appreciated over the long-term. Making a gift of stock to Hillel is very simple, involving an electronic or paper transfer from your stockbroker or mutual fund company to our account.
If you have questions or would like to learn more about making a gift of stock, you may contact Eran Gasko directly.