Do you have a stock that you purchased years ago and if you were to sell it today you would pay capital gains tax?
Donating securities (which includes stocks, bonds, mutual funds, etc.) directly to St. Mary’s Hospital Foundation is a tax-efficient method of charitable giving.
When publicly traded stocks or shares are transferred directly to our Foundation, as the donor, you will no longer pay tax on the capital gains. It will not affect your cash flow and provides you a significant tax break…today!
Here’s how it works:
When shares of a listed company are transferred directly to our Foundation, the donor pays no tax on any capital gains, compared to the usual 50% taxability. A donation receipt is issued for the full value of the shares transferred, which, in most cases, will eliminate the capital gains tax and can be used to reduce other income taxes.
The process for transferring securities is quite simple.
- Meet with your financial advisor to select the appropriate security to transfer
- Download the Stock Transfer Form
- Return the stock transfer form and the transfer can be processed electronically.
- Once the securities are received by the Foundation, a receipt will be issued for the market value on the day of the transfer.
You can also donate securities (stocks, bonds, mutual funds) in your will.
If you purchased $1,000 of securities several years ago and they are currently valued at $10,000, here is what your donation will look like:
The above chart assumes a 46% marginal tax rate. This is for illustrative purposes only and does not constitute legal or financial advice. Seeking professional advice before deciding upon your donation strategy is recommended.
||Sell securities and donate the after-tax proceeds
||Donate securities through St. Mary’s
|Original Cost of Securities
|Current Market Value
|Tax on Capital Gains
|Donation Amount After Tax
|Your Charitable Tax Credit