A gift of stock may be more tax-wise than a cash gift. As stocks grow in value, they may appreciate substantially beyond the original investment. When the stocks are sold, any growth above the original cost is considered a capital gain and is subject to federal capital gains tax of up to 20 percent (15 percent federal rate and many states treat capital gains as ordinary income). By giving Young Life appreciated securities (that have been held at least a year and a day), you can avoid the capital gains tax and receive an income tax deduction for the fair market value of the stock at the time of the gift.
Example
Mr. Smith owns stock with a current value of $100,000. He originally paid $20,000 for the stock (his "cost basis" for the stock). This means when he sells the stock, he may pay a 20 percent (state and federal combined rate for example purposes) capital gains tax on the appreciation ($80,000 in appreciation x 20 percent capital gains tax = $16,000). By giving the stock to Young Life rather than giving cash, he not only will receive an income tax deduction for the fair market value of the stock on the day of the gift, he also will avoid the $16,000 in capital gains taxes.
| Stock |
$100,000 current value |
| Cost Basis |
$ 20,000 |
| Appreciation |
$ 80,000 |
| Capital gains tax avoided |
$ 16,000 |
| by making gift (assuming |
|
| 20 percent capital gains tax) |
|
| Current charitable tax deduction |
$100,000 |
To receive additional information, complete the confidential online
Gift Planning Information Request Form.
For all questions on how to set up credit card gifts, electronic fund transfers, a lost receipt or any other general giving questions, call Young Life Mission Assistance at (877) 438-9572.
For more information on setting up a planned gift to benefit Young Life, please contact:
Jeff Rudder
Director of Donor Services
Young Life Foundation
P.O. Box 520
Colorado Springs, CO 80901-0520
Phone: (800) 813-1945
Fax: (719) 381-1755
E-mail: inquiries@foundation.younglife.org
*The information contained herein is for explanatory purposes only and is not intended to be used as tax advice. Young Life recommends that you contact a professional tax advisor who can provide you with additional information on how your participation in the above program may affect your personal tax situation.