Make a Gift of Stocks & Securities
A donation of publicly traded securities is one of most effective and powerful ways to help Wellspring members while benefiting from significant tax advantages.
With a gift of appreciated stock, you will receive the benefit of a tax receipt for the fair market value of the stock, and not be subject to pay the capital gains tax. The elimination of the capital gains tax on a gift of securities may create a considerable tax advantage for you, which in turn reduces the cost of making such a donation.
You previously purchased stocks for $4,000, which are worth $10,000 today. This chart illustrates the tax benefits for you when you donate the stocks directly to Wellspring vs. sell the stocks and then donate the cash proceeds. Please note that this calculation is based on a top margin tax rate of 53.53% applied to 50% of the capital gains.
|Donate Securities||Sell securities and donate the cash proceeds|
|Original Cost of Securities||$4,000||$4,000|
|Current Market Value||$10,000||$10,000|
|Taxable Capital Gain (@50% inclusion)||$0.00||$3,000|
|Tax payable on realized capital gain(53.53% marginal tax rate)||$0.00||$1,605.90|
|Net after-tax cost of making a donation||$4,959||$6,564.90|
In order to take advantage of the tax advantage, gifts must be made in the form of securities that are not sold prior to the donation being made.
To make a gift of stock is easy. Simply download a Securities Transfer Form and follow the instructions.
Wellspring will provide you with a charitable tax receipt for the full market value of the donated stock at the day the stocks are transferred to Wellspring from your broker.
We welcome the opportunity to meet with you and your advisers to discuss your stock, bond or mutual fund giving options. Please contact:
If you have any questions about making a gift of stocks and securities, please contact us at email@example.com.