Margaret Wheat used a gift of stock to fund Central’s continued reach and impact

Give To Central by donating stock or another appreciated asset.

 Mrs. Margaret Wheat decided to use a donation of stock to give her gift to Central.  Here is what she said about that gift…

A gift of stock or other appreciated asset can be a benefit both to Central and you.

FOR EXAMPLE:

You want to donate $4800 to Central.

IF you give $4800 in cash, you can count the $4800 as a charitable deduction, IF you itemize your deductions AND all of your charitable gifts are not more than half (50%) of your adjusted gross income (AGI).

  • You likely would receive a charitable credit for $4800

            and

  • Central would receive a gift of $4800. 

IF you have stock or some other asset that has appreciated in value over the years, there might be even more benefit to giving the asset.

For example, John bought some Apple stock in 2000 for $22.00 per share.  It is now worth $480 a share.  When he goes to sell any of that stock, he will have a CAPITAL GAIN of $458 per share.  He will pay a significant CAPITAL GAINS TAX plus a new Medicare Contribution Tax on the capital gains.  A significant portion of the proceeds will be lost to taxes.

But, if John gives 10 shares of that stock to Central, Central will sell the stock and realize a $4800 cash gift.  John will get credit for the gift amount as a charitable deduction.  He can take the full deduction as an offset of up to 30% of his AGI.  He will pay NO tax on the Capital Gains, AND he will not have to pay the 3.8% Medicare Contribution Tax. 

  • You likely would receive a charitable credit for $4800
  • You would NOT have to pay any Capital Gains Tax or Medicare Contribution Tax on the $4580 Capital Gain. 
  • You SAVE approximately 20% Capital gains tax and 3.8% Medicare Contribution Tax or $1090 that would be paid in taxes.

and

  • Central would receive a gift of $4800. 

By giving an asset that has appreciated in value, you are able to cash in that asset or part of the asset and use it without the capital gains tax and the new Medicare Contribution Tax.  This can be a significant savings for assets that have been held for long periods of time.

If you have any questions, feel free to contact Dr. John Gravley, Vice President of Institutional Advancement at jgravley@cbts.edu or 913.667.5740