A Gift of Securities Allows You to Give MORE
Did you know gifts of appreciated stocks, bonds and/or mutual funds is one of the best ways donors can give more to support the charitable work they love? Donating appreciated securities is also one of the most advantageous ways to give by offering donors significant tax savings – quickly making this a favorite method of giving for many donors.
Why Giving Securities Can Be More Beneficial Than Cash Gifts
Your gift of appreciated investments to HMI increases the impact of your dollars, helping your money heal more land, produce more healthy food and cultivate even healthier communities!
Appreciated Assets = A Doubled Donation
|Cash Gift of $10,000||Securities Gift With a Basis of $10,000|
|Value of Gift||$10,000||Cost at Time of Purchase||$10,000|
|Tax-Deductible Amount||$10,000||Appreciated Value at Time of Transfer to HMI||$20,000|
|Impact Dollars of Your Gift||$10,000||Tax-Deductible Gift Amount||$20,000|
|Impact Dollars of Your Original $10,000 Investment||$20,000!|
By donating appreciated securities rather than a cash gift, this donor’s original $10,000 investment has substantially increased the impact of their dollars– even doubling it!
How it Works
Don’t Make a Costly Mistake
Many donors who give securities mistakenly believe the only way is to sell the investments then gift the cash proceeds to the organization they support. When this happens, however, and securities are sold at a higher market value than when originally purchased, the donor must pay capital gains tax, unnecessarily limiting the impact of their gift – and paying for it as well!
Transfer Securities Directly to HMI
and Reap the Tax Benefits
By transferring securities directly to HMI you not only save hundreds or even thousands of dollars in capital gains tax, but the entire fair market value of the securities are fully tax deductible.
|Donating Cash Proceeds From Sale of Securities||Transferring Donated Securities Directly to HMI*|
|Purchase Price of Securities||$10,000||Purchase Price of Securities||$10,000|
|Value at the Time of Sale||$20,000||Value at the Time of Transfer to HMI||$20,000|
|Long-Term Capital Gains Tax (15%)||$1,500||Long-Term Capital Gains Tax||$0|
|Tax-Deductible Contribution Amount||$18,500||Tax-Deductible Contribution Amount||$20,000|
|Donation to HMI||$18,500||Donation to HMI||$20,000|
It’s easy! Simply give these wiring instructions to your financial advisor or contact us at 505-842-5252.
To have a personalized proposal created for you, contact Kelly Curtis at 505-842-5252 x 107 or [email protected]
*This example is based upon an individual in the 25% federal tax bracket selling long-term securities (held longer than one year after purchase) and sold at a higher value than the purchase price. The deduction is generally limited to 30% of the donor’s adjusted gross income. Ask your tax advisor how this deduction can most benefit you.