Every year, Jim and Sharon would focus their attention on giving gifts to those that they loved. One year, they made an addition to their gift list and began including their favorite ministry in their giving plan. Now, their Christmas list included family members, friends, loved ones, and the children's camp that they had always been involved with.
Sharon: "Years ago, I inherited stock from my grandmother. We held the stock for several years but decided to sell a portion of it this year. The stock had gone way up in value, and our CPA informed us that we had a capital gain of nearly $120,000. We had always planned on making some kind of gift to our local children's camp, and the CPA reminded us that if we were to make a gift of this stock before the end of the calendar year, we would receive a charitable deduction on the gifted shares. This deduction will help offset the capital gains tax on the stock we sold."
Jim: "We had previously contacted the Foundation about possible ways to give to this camp, and they had mentioned a direct gift of cash, a donation of real estate, and several other options. However, he also mentioned that it might be especially beneficial for us to give some of our remaining stock. They could process the transfer directly, so the rest of our stock could be sold and given to the camp tax free"
Sharon: "We were still holding $80,000 in the same highly appreciated stock and did not intend to sell, primarily because of the substantial capital gains tax we already faced. The Foundation representative recommended that we consider an end-of-year gift that would help lower our taxes. It meant that our stock would be sold, part of the proceeds would come to us, and part would be gifted to our favorite charity."
Jim: "That is what we decided to do. We gave the $80,000 in stock and received a charitable deduction and avoided large capital gains taxes. The deduction even offset the capital gains for our prior stock sale of $120,000 earlier that year. We are very pleased that our gift to the camp could bless their ministry and save us a lot of money in taxes."
**Note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, please contact us for more information.
