December 15, 2008

Taking Stock of your Situation

Lately Bread for the City has been fielding a lot of questions about donations of stock, and by far the most common question is “what is the benefit of donating stock instead of cash?” There actually are some benefits. By donating stock to Bread for the City, you can take something that cost you $2,000 and turn it into a $20,000 gift to our programs, while also receiving significant tax savings. Let's do some math:

You bought 10 shares of Stock X for $2,000 fifteen years ago. The stock is worth more today than it was in 1993 (really, some of them are!), and now you'd like to use that stock to make a $20,000 donation. Assuming you're in the 28% tax bracket, you receive a $5,600 tax deduction right off the bat. To further sweeten the deal, you pay no capital gains taxes on the $18,000 in appreciated value. Right there is another $2,700 in savings. (Grand savings total: $8,300)

In short, you just saved money twice by:
1. Not having to pick up the appreciated stock value as income
2. Receiving a $20,000 tax deduction for making a charitable gift

Not a bad deal.

So, how do you make a stock gift to Bread for the City? Read all about it here or contact me at 202.386.7613 or

I can tell you how to make a stock gift to Bread for the City. If you need actual financial advice, please contact your personal financial advisor.

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