If you’re planning on making a donation this year to San Diego Humane Society, think about looking through your portfolio before you write your check.
There are beneficial tax advantages to making a charitable gift of appreciated securities as opposed to a gift of cash.
Many individuals hold highly appreciated stock and don’t intend to sell it primarily because of the substantial capital gains tax they would owe.
For example, let’s say you bought stock for $1,000 several years ago and today it is worth $20,000. If you sold the $20,000 stock, you would pay capital gains tax on the $19,000 gain in value.
But if you donate the stock you avoid paying capital gains tax and you can claim a charitable tax deduction on the fair market value of the donated shares – the full $20,000!
When San Diego Humane Society sells the stock, we are exempt from paying capital gains tax due and we receive the full $20,000, which helps to support San Diego Humane Society’s vital programs and services.
If you are over the age of 55, we can also provide you with a charitable gift annuity illustration where you can make a gift of appreciated stock, receive a fixed income stream based on the full fair market value of your gift of securities, get a charitable tax deduction and avoid paying capital gains tax.
To find out more about avoiding capital gains tax and giving a gift of appreciated stock, please contact us.
Wiring Instructions for DTC Eligible Securities:
CHARLES SCHWAB & CO.
DTC 0164, CODE 40
FOR THE ACCOUNT OF: San Diego Humane Society & SPCA
SCHWAB ACCOUNT #: 7779-0989