Appreciated Stocks or other assets

If you own stock, it is often more tax-wise to contribute stock than cash.

A gift of appreciated stock generally offers a two-fold tax saving.

1. First, you avoid paying any capital gains tax on the increase in value of the stock.

2. Second, you receive an income tax deduction for the full fair market value of the stock at the time of the gift.

Example: If you purchased some stock many years ago foronly $1,000, and it is now worth $10,000, an outright gift of the stock to us would result in a charitable contribution deduction of $10,000. In addition, there is no tax on the $9,000 appreciation in value.

Another example…

Suppose Richard and Terri had 300 shares of XYZ Corporation that they purchased at $15 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 gain on the difference between their cost and what they would receive from the sale $36 minus $15 = $21 capital gain per share.
300 shares X $21.00 = $6,300 in capital gains.

Richard and Terri could sell the stock, pay the tax on the capital gain, and either keep or donate the proceeds.

If…instead of selling the stock, they gave the 300 shares to public broadcasting… …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, public broadcasting receives more than it would receive if Richard and Terri first sold the
stock and then donated the proceeds after deducting the capital gain taxes.

Also, Richard and Terri receive a greater tax deduction by giving the stock directly and avoiding the capital gain tax

The process of donating an appreciated asset is simple. The following is a sample of bequest language:

"I give to WQLN all of my shares of XYZ stock or mutual fund to be used for the benefit of WQLN Public Broadcasting a Pennsylvania nonprofit corporation, for its general use and purposes.”