Appreciated Assets

GIVING STOCK TO THE BOYS & GIRLS CLUBS OF ADA COUNTY

For many donors, giving appreciated stock to the Boys & Girls Clubs may be preferable to cash. This is a tax-savvy way to benefit from growing assets. Federal tax-laws offer special incentives for gifts of stock, particularly if the stock has appreciated in value.

There may be tax benefits when gifting appreciated stock

  • You may avoid paying capital gains tax on the sale of appreciated stock. Any gain is taxable if you sell the stock yourself, but perhaps not if you donate it to the Boys & Girls Clubs (subject to IRS deduction limits).
  • Your charitable deduction is for the full fair market value of the stock at the time of receipt by the Boys & Girls Clubs of Ada County for federal income tax purposes on the date the gift is made.
  • You receive credit from Boys & Girls Clubs for the full fair market value of the stock, but the cost to you is only your original purchase price (cost basis).

Donating stock to charity is the ultimate win-win

Assume you invested $1,000 in Stock ABC five years ago. Today, your stock would be worth approximately $5,000. If you sold the stock, you would have to pay capital gains tax on the $4,000 gain. With current capital gains tax rates at 15 to 30 percent (depending on your income and where you live), that means you would owe between $600 and $1,200 to the IRS. But if you donated your Stock ABC shares, you may be able to avoid those taxes altogether and also be able to deduct the value of your $5,000 gift as an itemized deduction.

Seek advice on tax considerations

A gift of stock made before December 31 of a calendar year may reduce your tax burden for the year you give. Your financial advisor can explain the possible tax benefits depending on whether the stock has appreciated or lost value since the time you acquired it. You also must have owned the stock for longer than one year.

How to donate

Please contact Colleen Braga at Colleen@adaclubs.org or Jodi Davis Gempler at Jodi@adaclubs.org for transfer instructions. You can also reach us at 208-639-3167.

*If you have physical stock certificates, please mail to:

Boys & Girls Clubs of Ada County
Atten: Colleen Braga
610 E 42nd St.
Garden City, ID 83709

For security purposes, please mail the signed stock certificate and signed stock power in two separate envelopes using certified mail.

Helpful Resources: