Donating Stocks to the Library of Teachings Endowment Fund
You can make a bigger donation the Library of Teachings and Endowment Fund, and at the same time increase your personal tax deduction, by directly donating stocks, bonds, and mutual funds that have appreciated over time. Compared to donating cash or selling your appreciated security and then contributing the proceeds, by donating your stocks directly you may be able to automatically increase your gift and your tax deduction.
How does it work? It’s simple and easy.
When you donate stock to the Library of Teachings, you will generally take a tax deduction for the full fair market value. If you sell the stock and donate the proceeds, you first will have to pay taxes on the amount the stocks have increased since you bought them. So, because you are donating stock, your contribution and tax deduction will instantly increase.
Here’s a hypothetical example to show why donating stocks to the Library of Teachings is an excellent choice:
Mr. and Mrs. Khalsa, a married couple with several successful investments, were thinking of donating a portion of their stock to endow the Library of Teachings. They invested in this stock many years ago at a cost of $50,000, but it had done well and now it was now worth over $75,000.
At first, they considered selling the stock and donating the proceeds, because that seemed like the easiest option. But if they did that, they would first need to pay 15% capital gains tax on the appreciated amount, or about $3,750. This would mean that after the sale, they could donate the cash and take a tax deduction for a $71,250 donation.
If they donate the stocks directly to the Library of Teachings, their donation and their deduction is the full pre-tax value of $75,000. Wonderful for the Library of Teachings and fantastic for Mr. and Mrs. Khalsa!
What a great idea! Consider your long-term publicly traded stocks for a charitable donation to the Library of Teachings. Call us at 855-519-4790 and we will help you see how easy this can be.