Do you have appreciated publicly traded securities, such as stocks, bonds, mutual funds, ETFs? If you have owned these for over a year, there are tax benefits to using this “bucket” for charitable giving!
When donating long-term appreciated securities, you can avoid capital gain taxes that would be due if sold, get an income tax deduction, possibly create a lifetime income flow (see more below), and make a gift to Wheaton College.
Example
- John, age 65, has $50,000 of stock. He bought it for $10,000 several years ago. If he sells it, he will incur capital gains taxes on the $40,000 gain (estimated to be $6,000 – $8,000).
- By donating the stock to Wheaton, he avoids the capital gains taxes, receives a tax deduction for the full gift amount, and makes a gift to Wheaton College!
Don’t Forget! You can use securities to fund a Gift Annuity or Charitable Remainder Unitrust to create a lifetime income flow for you (or others), partially avoid or defer capital gains taxes, get a partial income tax deduction for the gift portion, and make a gift to support Wheaton.