Giving stock gifts is an easy way to make a gift to Produce for Better Health
Foundation and derive considerable tax benefits. In fact, many individuals
find that the tax benefits associated with giving to PBH actually allow them
to increase the size of their gift.
Donating appreciated property may enable you to avoid paying capital gains
tax, reduce your estate tax and/or provide an income tax deduction. It
is almost always a better strategy to give appreciated securities directly
to
the foundation, rather than selling them and donating the proceeds of the
sale. If you have a loss on your investment, it might be best to sell it
first, deduct the loss on your taxes and then contribute the proceeds.
A planned gift consisting of appreciated securities may create a lifelong
income stream that exceeds what you would otherwise have received in
dividends.
Securities that have lost value are not usually considered for gift purposes.
If you want to take your losses and invest the proceeds into a guaranteed
success, however, you can sell the stock, take the capital loss deduction
and make a gift to Produce for Better Health Foundation.
Example: Tax benefits of donating appreciated securities
Ms. Supporter, president of Shipping Company X, owns 100 shares of appreciated
stock currently valued at $50 per share ($5,000). She purchased the stock
15 years ago at a price of $10 per share (100 shares * $10/share = cost basis
of $1,000).
If Ms. Supporter gives the stock
to Produce for Better Health Foundation, she may be able to claim a charitable
deduction of the full market value of
the gift ($5,000) rather than the value of her original investment ($1,000).
And,
since a gift to the foundation is not a sale, she may not owe any capital
gains tax on the transaction.
If she were to sell the stock herself, she will
incur $4,000 in capital gains ($5,000 market value – $1,000 cost basis). After she pays taxes of
$600 (the 15 percent capital gains tax rate on the $4,000 gain), her gift
to Produce
for Better Foundation will be only $4,400.
Help us move fruits and vegetables onto the plates of America!
To learn how you can support the foundation through stock gift options,
please contact Theresa Kaufmann.
