The Benefits of Planned Giving: An Example
Following is an example of a Gift of Appreciated Securities (stock), which benefits MADRE the same way a cash gift does while offering these benefits to the donor:
- A federal tax deduction of the full market value (selling price) for each stock contribution you make.
- No capital gains taxes.
- No federal alternative minimum tax.
| Current Market Value of Stock Gift | $10,000 |
| Cost Basis (Original Cost) | $2,000 |
| Capital Gain | $8,000 |
| Income Tax Deduction for Donor | $10,000 |
| Tax Savings from Deduction | $3,500 |
| Capital Gains Tax Avoided ($8,000 x 15% capital gains tax rate) | $1,200 |
| Total Tax Savings ($3,500 + $1,200) | $4,700 |
| Benefit to MADRE | $10,000 |
