Gifts of Stock
Giving stock, instead of cash, as a donation can greatly benefit both you and Flower City Habitat.
If the stock has increased in value from the time of purchase, you can avoid paying the capital gains tax by donating the security to FCHH. When the security is being donated to FCHH, the total amount will still be eligible for a tax deduction. Since taxation is avoided on the stock donation, you will be able to make a larger donation.
For example, let's say you were looking to make a $1,000 donation to our house building mission. You could either give cash or donate stock. Let's assume that you bought stock for an original purchase price of $700, but it is now worth $1,128.55. To make it simple, let's assume capital gains tax is 30% of the stock's appreciation. Selling the shares for cash would net about $1,000 after capital gains tax (1,128.55 - (1,128.55 - 700)*0.30). In this case, you should be indifferent between donating the entire stock or giving cash, as both choices will cost you $1,000. However, FCHH can receive more benefit from a stock donation, as we will receive a gift valued at $1,128.55, instead of the $1,000 in cash.
Please call our Teresa Bianchi, at (585)546-1470 Ext. 305 or contact her via email at email@example.com. She’ll tell you just what to do!