Gifts of Appreciated Stock

GIFTING APPRECIATED STOCK TO THE ANDERSON FREE CLINIC

A GIFT THAT KEEPS ON GIVING

… HOPE AND HEALTH CARE TO THE UNDERSERVED IN OUR COMMUNITY!

PharmacyWe thank you for considering the care provided at the Free Clinic worthy of your support. In addition to being a basic need provided to Anderson County residents, we offer an incredible financial return on your investment by leveraging every $1 to provide $8 in direct services

If you are considering a charitable contribution this year to the Anderson Free Clinic, it is in your best interest to seek out the most effective manner in which your money can work for you. Gifting appreciated stock can be one of the most effective means of tax savings available — courtesy of today’s U.S. tax laws.

THE BENEFITS OF GIFTING APPRECIATED STOCK *

 1. The satisfaction of knowing your money is invested in a cause important to you.

2. Capital gains taxes on the stock are avoided.

3. You will be eligible to receive an income tax charitable deduction for the full fair market value of the  stock at the time of the gift.

To qualify for these special tax advantages, the security must have been held for at least one year. A gift of stock in certificate form should be postmarked by December 31 or your financial advisor can arrange for a year-end gift of stock from your account. Your gift of appreciated stock is fully deductible up to 30% of your adjusted gross income. For example, if your adjusted gross income is $100,000, up to $30,000 of long-term appreciated stock and other capital gain property may generally be deducted, although high-income donors may be subject to a partial phase-out of itemized deductions. Any excess can generally be carried forward and deducted over as many as five subsequent years.

HOW GIVING AWAY $10,000 IN STOCK CAN BENEFIT YOU

Take a look at the tax savings of donating securities versus a cash gift. The chart below assumes you wish to donate shares of stock worth $10,000 that you purchased for $2,000 several years ago.

ScenariosDonate Appreciated Securities Outright Donate $10,000 Cash Sell Securities & Donate Cash
Charitable Deduction $10,000 $10,000 $10,000
Ordinary Income Tax Savings (assumes 35% rate) $3,500 $3,500 $3,500
Capital Gains Tax Paid (assumes 15% tax rate on $8,000 gain) $1,200 saved N/A $1,200 paid
Net Tax Savings $4,700$3,500 $2,300

The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. The Anderson Free Clinic is not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

For more information, call Jennifer Norman, at (864) 512-7812 or McDonald, Cox & Klugh, Inc. located at 2202 North Main Street, Anderson, SC (864) 231-7760 who works with donors on behalf of the Anderson Free Clinic to make the transfer of your Appreciated Stock gift an easy transaction.

 *Source: http://www.irs.gov/publications/p526/ar02.html