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| Saint
Mary's College Planned and Special Gifts 110 Le Mans Saint Mary's College Notre Dame, IN 46556 574/284 4600 Fax 574/284-4749 jamacken@saintmarys.edu Planned Giving |
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The gift of an asset, often common stock or mutual fund shares, is a valuable way to make a contribution to a charity and receive tax benefits based on the value of the asset(s). For example, suppose Phil and Alice in this example had 300 shares of XYZ Corporation that they had purchased at $15.00 a share some years ago. The current value in today's market is $36 a share. If they sold the stock in the market, they would have a taxable, long-term capital gains on the difference between their cost and what they would receive from the sale ($36 minus $15 = $21 capital gains per share. 300 shares X $21.00 = $6,300 in capital gains). They could sell the stock, pay the tax on the capital gains, and either keep or donate the proceeds. If, instead of selling the stock, Phil and Alice gave the 300 shares to a charity, they would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) as a charitable gift. By donating the stock, the charity receives more than it would receive if Phil and Alice first sold the stock and then donated the proceeds after deducting the capital gains taxes. Also, Phil and Alice receive a greater tax deduction by giving the stock directly to the charity and avoiding the capital gains tax. While the gift of appreciated assets often involves stock, other marketable assets, such as land, antiques, and homes, can be utilized as potential gifts with the possibility of valuable tax benefits. However, these other assets are reviewed on a case-by-case basis. For more information about gifts of appreciated assets, please contact us so that we can respond to your specific needs. Return to Scenario One or to Scenario Four. |
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2002 Saint Mary's College
Development Office
