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Gifts of Stock or Real EstateYour gift of appreciated securities and real estate are welcome at Catholic Charities of Kansas City-St. Joseph. A gift of stock or mutual funds may be more favorable than a cash donation. If have held stocks and mutual funds for a period greater than one year which have increased substantially in value since the time of purchase, a donation of these stocks may significantly reduce the income tax on these gains. Benefits of a Stock or Mutual Fund GiftA donation of appreciated stock offers two benefits. For example, if you write a check for $10,000 to your favorite charity, you will receive a deduction of $10,000. Similarly, if you have stock purchased for $2,000 with a value of $10,000 and give that to charity, you also receive a deduction for $10,000. Additionally, with the gift of stock you also benefit from a bypass of capital gains. If you were to sell the $10,000 value of stock yourself, the $10,000 in sale proceeds less the $2,000 basis, would incur a long-term capital gain of $8,000. This would subject you to tax decrease at 20% and, in many states, an additional state tax payment. Since charities do not pay tax, you may donate the stock to the charity and bypass the gain. The charity simply sells the stock without paying tax and has the full $10,000 available. This method enables donors to receive an income tax deduction for $10,000 and added capital gains tax savings, since you paid no tax on the $8,000 capital gain. Benefits of Real Estate DonationA donation of real estate can provide you with the maximum tax benefits allowed by law. There are many reasons why donations of real estate are a flexible and beneficial option to consider in your overall estate and charitable giving plans. This includes:
For information about a donation or stock or real estate, please contact:
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Gifts of Stock or Real Estate
Rozanne Prather