Many donors prefer to give gifts of appreciated stocks, bonds, mutual funds, or exchange-traded funds because they can have a significant impact on our mission while maximizing potential tax benefits by avoiding paying capital gains taxes.
How it works:
Making a gift of appreciated securities can be a simple and efficient way to give.
1. You transfer appreciated securities to the Park Trust.
2. We sell the securities and use the proceeds to fund our critical work.
How you benefit:
When you donate appreciated securities, you are able to deduct the gift as a charitable donation AND avoid capital gains tax at transfer. This allows you to save on taxes and increase your impact for parks. Here’s how it works:
| $10,000 CASH GIFT | $10,000 Stock Gift (cost basIs $5,000) | |
|---|---|---|
| Charitable Deduction | $10,000 | $10,000 |
| Tax Savings @ 37% | $3,700 | $3,700 |
| Capital Gains Tax Saved | $0 | $1,190 |
| Total Tax Savings | $3,700 | $4,890 |
How to transfer stock:
First, transfer by broker: Send a letter to your broker providing instructions for the stock transfer. Include the following information in your letter:
Brokerage House: Charles Schwab
Account Name: National Park Trust (tax ID# 52-1691924)
Account Number: 3801-6879
Telephone Number: 1-800-435-4000
DTC Number 0164 Code: 40
**For mutual fund gifts or gifts of stock not held in a brokerage account, please contact Charles Schwab at the phone number listed above.
Second, complete our online form to let us know your gift is coming; this helps us identify it when it arrives.
Questions? Contact Dolores McDonagh, Director of Development at [email protected].
Assumptions: Donor in 37% income tax bracket; maximum capital gains tax rate 23.8%. Tax rates and brackets vary for different individuals and families. State income tax rates not considered but may also afford you savings.
The specifics of any deduction allowed will depend on your unique circumstances. As a result, you should consult your advisors for purposes of calculating the amount of your charitable income tax deduction, in light of applicable limitations for charitable contributions based on your adjusted gross income and any other charitable contributions you may make this year.
Please note that the securities you use to make your gift must have been held by you for more than one year to be fully deductible.
