With the stock market reaching unprecedented levels recently, now might be the perfect time to make a gift of stock to a favorite charitable organization like Paradisus Dei.  Gifting appreciated securities is a very tax-savvy way to make a financial contribution because it can provide you with significant tax benefits that go beyond a simple gift of cash.  For example, a gift of stock may provide you with a double tax benefit, provided you have owned it for at least one year:

• You are able to deduct against your income the full value of your shares at the time you gift them, not just your basis in the stock.  Let’s say you bought shares of a company’s stock for $5,000 two years ago and now they are worth $10,000.  Gifting them allows you to deduct $10,000 against your income, not just your basis of $5,000.
• You can avoid significant capital gains taxes which are often as high as 20 percent.  In the example above, the owner of the stock would face a $5,000 capital gain if he or she went to sell those shares which could cost as much as $1,000 in taxes.

Paradisus Dei, of course, benefits too. If you sold the stock, you would have to pay the capital gains taxes, and you would have less money to contribute. When you donate the stock, we sell it immediately, but because we are an exempt organization, we don’t have to pay capital gains taxes.

To learn more about a gift of stock or how to make one, please contact Len Bertolini, our VP of Development, at [email protected].  As always, please consult your accountant or financial advisor to determine what form of charitable giving would be of greatest benefit to you and your family.