Planned Giving - Securities
A Tax-Smart Way to Give Back
If you would like to continue supporting the life-changing programs of SafePlace, there are many tax-wise giving options to choose from. Read on to learn about two options that offer particularly outstanding tax benefits.
If you would like to make an impact today…
Securities that are worth more now than when you purchased them, and that you have owned them for more than one year, make excellent charitable gifts. When making such a gift, you qualify for two tax benefits.
- You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their original cost. (Your deduction is limited to 30 percent of your adjusted gross income, but the excess is deductible for up to five additional years.)
- You are exempt from paying capital gains taxes on any increase in value—taxes you would pay if you had otherwise sold the securities.
These two tax benefits make it appealing for SafePlace supporters to make their annual gifts using appreciated securities rather than cash, as the chart below shows. As you can see, giving stocks lets you give your same annual gifts—with the same impact on the families we serve—at a reduced cost. Plus, you avoid paying up to 15 percent capital gains tax on the appreciated stock you donate.
How to Complete Your Gift
If you have the physical securities, you can hand-deliver them to us or mail us the stocks and stock power separately. If you don’t have possession of the physical securities, instruct your broker to electronically transfer your intended shares. Contact Susan Dunning, Major Gifts Officer, for information your broker will need to complete the transfer. Make sure to ask your broker to notify us once the transfer is complete.
“Several years ago I was invited to serve on the board of SafePlace. Having more of a background in business than with the issues that SafePlace deals with, I started my board service on the Finance committee. It was a period of significant financial stress for the agency. I was immediately impressed with the transparency of the financials and the foresight in modeling future outcomes. But most important, I was taken by the courage and commitment with which the staff attacked the budget issues. Through my continued work I soon realized why. The staff and people of SafePlace maintain a culture of respect for each other, a common commitment and willingness to sacrifice for the agency, and last, a certain heroism for always looking at new, yet well measured means to fulfill its mission and vision. The bottom line, SafePlace is an excellent custodian of public support and I have always had confidence that my gifts will be used well. In the past I have made such gifts in securities. Doing so is tax efficient and as easy as sending an email. As a donor you receive the full charitable deduction for the market value of the gift while knowing that SafePlace will use it with care and wisdom. That is a “win win” if there ever was one!”
John Jones – Chair, SafePlace Foundation Trustees
For additional information about Planned Giving, please contact Candace Lopez - 512.356.1689.
This information is not intended as legal advice.
Please consult your attorney or financial advisor regarding any planned gift.