Gifts of stock, mutual funds or bonds offer an easy and tax-efficient way to make a lasting contribution to Labouré. Your gift will help to sustain the mission of Labouré while avoiding capital gain tax and reducing federal income tax.
In general, when a person sells an appreciated asset, he or she must recognize capital gain on the sale of such property. For example: let’s say you purchased $4000 worth of ABC stock, which is now worth $10,000. If you sold the stock, you would generally be required to pay taxes on the increased value of the stock. If instead you gift the ABC stock to Labouré you will avoid the tax on the increased value of the stock, and also be able to take a charitable deduction of $10,000 on your federal income tax return, saving the money you would have been required to pay in taxes on the $6000 increase in the value of the stock. You would also save in state taxes as well. Essentially you would be making a $10,000 gift to Labouré – one that would “cost” you roughly $4000 to do.
To ensure that you are entitled to receive the most beneficial tax treatment, please contact us or a tax advisor before you sell your stock.