Gifts of stocks, bonds and mutual fund shares are popular means of supporting The Foundation for Evangelism.  Securities that have increased in value since you purchased them may offer a charitable deduction for full market value and avoid capital gains taxation on the appreciation.  The result is a significant gift at a much smaller cost.

Illustration

Mary purchased 1000 shares of XYZ stock for $5 per share more than a year ago.  The stock is now worth $15 per share.  Mary wishes to make a gift to The Foundation for Evangelism of $15,000.  Mary determines that she is in the 35% tax bracket and is subject to capital gains taxation on sale of the stock at a rate of 20%.  If Mary sells the stock and makes a $15,000 gift of cash, she can receive a charitable deduction of $5,250, but she may pay $2,000 in capital gains taxes.  She decides to make a gift of the stock.

If Mary makes a $15,000 gift of stock

$15,000 charitable deduction
x      .35 tax bracket
$  5,250 tax savings from charitable deduction

Plus...

$10,000 potential capital gain avoided
x      .20 capital gain tax rate
$  2,000 capital gain tax avoided on sale of stock

TOTAL TAX SAVINGS:  $7,250

As a result of Mary’s choosing to make a gift of the stock, the after-tax cost of her $15,000 gift is only $7,750!