While donating cash is the simplest and fastest method for many, the Hindu American Foundation allows you to make a new pledge or fulfill an older pledge with appreciated securities. Gifts of stock can provide you with potential tax advantages while supporting the important efforts of HAF. If you have appreciated securities that have been held for at least one year, you can bypass the capital gains tax by donating them to HAF, while still getting the full tax benefit of the value of the stock you transfer.
Samir wants to donate $50,000 to HAF. After comparing the cash versus stock option, he learns that he will have tax savings of $6,000 with a gift of stock.
Cost = $50,000
Donate Appreciated Stock
Original cost of stock = $10,000
Current value of stock = $50,000
Capital gains tax saving = 15% capital gains rate * $40,000 gain = $6,000 tax savings
Cost after-tax-savings = $44,000 (Note: For capital gains tax savings, stock must be held by donor for at least year prior to donation)
How Do I Donate Appreciated Securities?
The process is simple! Provide your stockbroker with the stock name and number of shares you would like to contribute, along with HAF’s account information below:
Firm Name: Morgan Stanley
DTC #: 0015
For the benefit of HAF/396034021
Then contact Sheetal Shah at (202) 223 8222 or email@example.com who will confirm when your order has been successfully completed.
The information on this form is not intended to represent legal or tax advice or to substitute for such advice. Individuals should consult with their financial advisor and/or accountant on all legal and tax matters.
HAF retains the right to sell the securities after they have been transferred into our account.
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