GIVING APPRECIATED STOCK
If you have appreciated stock or other securities you’ve owned for at least a year, you can receive a double tax benefit by donating this stock to Norfolk Christian. Not only will you receive a tax deduction for the fair market value of the stock, but you’ll also avoid paying capital gains tax. This makes giving appreciated stock a much more cost effective option than giving cash.
Comparison Example
You purchased shares of an up and coming company that you originally bought for $4,000. After five years, it is now worth $20,000, a growth of $16,000.
Option 1 – Sell the stock and then give proceeds to Norfolk Christian
Stock sale proceeds $20,000
*Capital Gains Tax $3,200
**Tax savings -$4,400
Total Cost to Give $18,800
*15% Federal & 5% State Capital Gains Tax
**22% Income Tax Rate
Option 2 – Gift stock directly to Norfolk Christian
Current value $20,000
Capital Gains Tax $0
*Tax Savings -$4,400
Total Cost to Give $15,600
*22% Income Tax Rate
