Oklahoma Baptist Homes for Children

 

Gifting Stock: Taking Stock at Year-End

Many people own appreciated stock - stock that has risen in value over time. For example, Jane has a stock account with a well-known brokerage company. One of her stocks has grown from $15 a share to $75 a share over the past few years. If she asked her broker to sell the stock she would owe tax on the $60 of appreciation for each share that was sold.

However, if Jane gave the stock to Oklahoma Baptist Homes for Children, she would avoid this tax on the appreciation and receive, instead, an income tax charitable deduction on the full value of the stock. What's more, because Oklahoma Baptist Homes for Children is a qualified charitable organization, it could sell the stock and avoid any tax on the appreciation. A win for Jane; a win for Oklahoma Baptist Homes for Children.

Let's say Jane decided to give 100 shares of this stock as a year-end gift to Oklahoma Baptist Homes for Children. In making the gift, she would obtain a charitable income tax deduction of $7,500, even though she only paid $1,500 for these shares originally. If she happens to be in the 28 percent tax bracket and claims the deduction on her itemized tax return, she could possibly save $2,100 in taxes more than she paid for the stock in the first place!

Historically, year-end is a popular time for making stock gifts. In fact, most stock gifts occur during the fourth quarter of the year. Many thoughtful donors review their stock portfolio and select those stocks which have appreciated the most and which have been held for more than a year. These donors give stock instead of cash because they have discovered the value and enjoyment of stretching their giving power by giving the appreciation. And, after all, the more they can prudently give to help the worthy efforts of Oklahoma Baptist Homes for Children, the better they feel.

Have you considered making a gift of appreciated stock to Oklahoma Baptist Homes for Children? It may be better for you than making a gift of cash. To learn more about this, you may want to talk with your CPA and investment advisor.

If you would like to discuss a planned gift, please feel free to e-mail Neal Wooldridge, Vice President for Planned Giving, or call him at (405) 570-9836. As always, your inquiry will be treated confidentially.


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