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Other Ways to Give
Gifts of Securities
A gift of stock can provide much-needed support
for SAS's outreach and education projects and offer you financial
benefits as well.
Publicly traded securities (stocks, bonds,
etc.) may be transferred to SAS. If you have owned the securities
for more than one year and itemize deductions, you may be entitled
to an income tax deduction for the full market value of the securities.
With a gift of securities to SAS, you also may avoid any capital
gains taxes that would be due if you sell the stock.
Because of the potential double tax savings,
a gift of appreciated securities usually has a lower after-tax cost
than an equivalent gift of cash. For example, let us assume you
are in the top federal income tax bracket and own stock worth $10,000,
which you bought for $2,000 and have held for longer than twelve
months. If you sold the stock, you would be liable for $1,600 in
capital gains tax on the $8,000 gain. By giving the stock to SAS,
you pay no capital gains tax and may receive a $10,000 charitable
deduction, saving you as much as $3,500 in income taxes. Your tax
savings are even greater if you factor in state and local income
taxes. The cost of giving a dollar in stock, in this example, is
only 53 cents. The cost of giving the same dollar in cash is 65
cents, more than a fifth higher.
Gifts of appreciated securities that pay little
or no dividends make especially good choices for charitable contributions.
If you own securities that have decreased
in value, it is generally advisable to sell the securities and then
give the cash proceeds to make your gift. This way, you may be able
to deduct the loss to help offset other gains.
If you would like more information on this,
please feel free to contact the SAS Director of Fundraising at 1-401-823-7800,
or click here to contact us
by e-mail.
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