How a Gift of Stock Can Be Win-Win
If you own stock that’s increased in value since you purchased it (and you’ve owned it for at least one year), you have a unique opportunity to make a philanthropic gift. When you donate securities to United Way of Berks County, you receive the same income tax savings (if you itemize) that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20 percent.
Making a gift of securities to support United Way’s work is as easy as instructing your broker to transfer the shares. To get started, simply visit our Stock Giving page and fill out the form. Once the form has been submitted, you will receive an email with the transfer instructions.
An example of how a gift of stock works:
Dave owns stocks currently valued at $25,000 that he purchased for $10,000 several years ago. He would pay $2,250 in capital gains tax if he sells the securities ($15,000 X .15 capital gains tax rate). Instead, Dave decides to donate the stock to United Way rather than sell it. By doing this, Dave receives an income tax charitable deduction for the full fair market value of $25,000 and eliminates any capital gains tax.
Using assets other than cash also allows you more flexibility when planning your gift, and there are even more potential benefits if you plan your gift creatively. For example, if you aren’t ready to give up these assets during your lifetime, a gift of securities through your will or living trust allows you the flexibility to change your mind at any time. You can continue to receive dividends and participate in shareholder votes, and the securities are still yours if you need them for other expenses.
Through creative gift planning, you can secure your own financial future and help support our mission. We can work with your advisors to help you plan for tomorrow and receive maximum benefits today.
Benefits:
- Receive an income tax deduction for gifts of securities if you itemize.
- Provide relief from capital gains tax with gifts of securities.
- Help 150,000 Berks Countians with your contribution.
Take the Next Step:
Visit our Stock Giving page to get started. If you would like more information about donating stock, contact Leslie Davidson at 610-685-4560 or leslied@uwberks.org.
The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.