The Nebraska Community Foundation works with community, organizational and donor-advised affiliated funds serving 250 communities located in 80 counties. NCF and its affiliated funds have reinvested $269 million in Nebraska since 1994.
Tax laws offer a triple tax benefit for gifts of securities (stock, bonds and mutual funds) that have increased in value since purchase or acquisition. Donors can receive several tax benefits: charitable income tax deduction, avoidance of capital gains taxes, and reduction of potential estate taxes.
The following example shows the tax benefits donors can receive from gifts of securities versus a gift of cash.
|Gift of Stock||Gift of Cash|
|Value of the gift||$100,000||$100,000|
|Income tax savings (25% tax bracket)||$25,000||$25,000|
|Capital gains tax savings (15% on $80,000 gain)||$12,000||$0|
|TOTAL TAX SAVINGS||$37,000||$25,000|
Your tax deduction for a gift of actively traded securities is determined by the average of the highest and lowest quoted sales price on the date of the gift. For a gift of mutual fund shares, your deduction is the public redemption value of the shares on the date of the gift.
The date used to value your gift of securities depends upon the way the securities are delivered.
Charitable deductions for gifts of securities may be up to 30% of your adjusted gross income in the year of the gift. If the total amount of the charitable gifts of appreciated property made in one year exceeds this 30% deduction limit you may carry over that part of your deduction for up to five additional years. For example, if your adjusted gross income for the year is $100,000, up to $30,000 of appreciated property gifts given to the Nebraska Community Foundation or for the benefit of an affiliated fund is deductible this year. Any amount over $30,000 may be carried forward for up to five additional years.
To learn how you can make a charitable gift of securities and receive income from those securities for your lifetime CLICK HERE.
Read Frank and Shirley Sibert’s story about their gift of securities to benefit numerous Nebraska charities while providing lifetime income for the couple:
The Bertrand Area Community Fund raises awareness of charitable giving while supporting summer youth sports.Read more →