Gifts of Appreciated Stock

• The donor receives a federal income-tax deduction for the full fair-market value of the securities.
• The donor avoids long-term capital-gain tax on any appreciation in the value of the stock, thereby donating 20% more!
• The donor’s gift will support OneFamily’s mission to rehabilitate Israel’s victims of terror.

Here’s an example of why donating appreciated stock may make sense for you:

The reason is simple: avoiding capital gains taxes. By donating the stock directly to OneFamily, you avoid paying capital gains tax on the appreciated value of the stock. By donating stock that has appreciated for more than a year, you are actually giving 20% more than if you sold the stock, and then made a cash donation. The maximum federal capital gains tax rate is 20% on long-term holdings. Given that the Dow Jones Industrial Average rose from almost 13,000 at the end of December 2012 to over 28,500 at the end of December 2019, you are likely to realize a taxable profit on the sale of assets you purchased in the past seven years. But, if you donate the stock directly to OneFamily, there is no capital gains tax to pay. Plus, you are still eligible to deduct the full fair-market value of the asset that you donated from your income taxes, up to the overall amount allowed by the IRS.

If you have any questions about gifts of stocks and bonds, please contact our treasurer, Chaim Szafranski, at (646) 289-8600. We would be happy to assist you. OneFamily is a 501(c)(3) and our EIN # is 11-3585917.