• You may save current income for day-to-day needs because a gift of stock does NOT come out of your cash flow.
• You may save taxes two ways: Income tax and Capital Gains tax.
• You may lower the "cost" of your gift.

Why Donate Stock?

Most people think of cash when they consider a charitable contribution, but a gift of securities may be a wiser choice. By contributing appreciated securities to the North Texas Area United Way, you make a powerful community contribution while gaining valuable tax advantages. If you have owned appreciated securities for at least a year and a day, your contribution can offer the following benefits:

Benefits of Making a Stock Transfer Contribution

Eliminate Capital Gains Tax

By donating your appreciated securities, you avoid the capital gains tax you would owe if you sold the securities yourself. The deduction of gifts of appreciated capital-gains property is limited to 30% of your adjusted gross income, subject to the five-year-carry forward provision.

Enjoy a Last Minute Tax Break

At the end of the calendar year, when tax breaks and timing are critical, securities can be deducted on the date you transfer them.

Claim the Market Value

By claiming the market value (versus the cost basis) of the securities, you can enjoy a charitable contribution tax deduction equal to the average of the highest and lowest quoted sales price on the day you make the gift.

Stock Advantages Over Cash

Your securities donation can deliver significant tax advantages over a cash donation, allowing you to fund the community issues you care about at a lower after-tax cost to you. The chart below depicts the difference between the after-tax cost of a gift of cash and a gift of stock. Assume that the stock was originally purchased at $250 (basis), the income tax rate is 27%, and the capital gains tax is 20%.

 

Questions regarding United Way's stock donation program can be directed to:

 
Stephanie Morris
Director of Leadership and Planned Giving
940-322-8638

smorris@ntauw.org