Generally speaking, there are three categories for making contributions:
- Gifts from accrued wealth
- Gifts from unrealized profits
- Gifts from income
Due to favorable tax provisions, one of the most popular ways of making charitable contributions is to contribute securities and other capital assets that have increased in value since they were acquired. Usually, the greater your income, the greater the tax savings. When “paper” profits are involved, the tax savings are substantial because you are giving appreciated assets rather than cash, and there is no liability for the capital gains tax. For these reasons, it is possible to make contributions to JFGH at an extremely low overall cost. It is important to remember to transfer the ownership and not sell the stock in order to avoid capital gains tax.
The federal government encourages charitable giving by allowing you to deduct up to 60% of adjusted gross income each year when a gift is in the form of cash, or up to 30% when payment is made through securities that have increased in value and have been held for more than one year and a day. In addition, if you are unable to use the entire amount of allowable tax deduction in one year, the excess tax deduction can be taken over the following five years until the amount is used up. Consult your professional tax advisor for the full details.
We appreciate your interest and generous support. Electronic delivery of stock shares is the most secure and expedient delivery process available and provides efficient internal control as well as cost savings. We also accept security certificates directly. For more information, please contact our Development Team at 240.283.6000.