Wednesday, December 09, 2020
Doug Anderson, the President of Anderson Coach & Travel in Greenville, and his wife Lori have been long-time supporters of St. Paul’s.
Over the years, they have tapped into a way of giving that actually saves them money AND increases the value of their gift.
They donate appreciated securities to St. Paul's. Appreciated securities are stocks, bonds or mutual funds that have been held for more than a year.
The Andersons have used appreciated securities to support capital campaigns at St. Paul’s to build porticos, to support benevolent care, and to construct The Villas.
Gifting appreciated securities is an often overlooked, but very tax effective way to give and rebalance your portfolio at the same time. The tax benefits are two fold. You can claim an income tax deduction for your gift and avoid paying capital gains tax.
“The ability to gift stock that has had nice increases in value allows you to fully recognize the value of the contribution and avoid capital gains tax which can be 15 - 20% of the increased value. This is a great way to enjoy the fruits of philanthropy without having to pay a penalty to do so.” - Doug
Doug and Lori are passionate about supporting the mission of St. Paul’s due to their own personal experiences. The ability to save on their taxes is an added bonus.
“St. Paul’s is a caring and compassionate community that has served many of my family members in various capacities,” said Doug. Most recently, his mother Dorotha “Dot” Anderson enjoyed life at The Heritage from 2009 until her passing at age 96 in 2013.
The Andersons’ good experiences with the care at St. Paul’s played a part in Doug’s decision to join the board of directors in 1993 and he continues to serve today.
As both a past resident family member and a board member, Doug has a well-rounded understanding of St. Paul’s mission and culture of care, which give him confidence in donating.
“I am certain that our donations to St. Paul’s are greatly valued and utilized wisely,” said Doug.
Perhaps you too want to make an impactful gift to St. Paul’s through appreciated securities. The ideal option to consider would be appreciated securities that have gained a lot in value since you purchased them.
Here's an example - You have appreciated stock in your portfolio that you originally purchased for $8,000 and is now valued at $15,000. This could be a good stock option for you to make a gift. The stock has almost doubled in value, and you originally paid $8,000 for what now would be a $15,000 gift.
If you would sell this stock now from your portfolio while the market is up, you would have to claim the $15,000 sales price as income and pay capital gains tax on the increase in value from the time it was purchased.
How much would that cost you? Let's pretend you are in the 24% federal income tax bracket. You would owe $3,600 in income tax. This is calculated by taking the total income of $15,000 x .24 federal tax rate = $3,600.
You would also owe $1,050 in capital gains tax. To calculate the capital gains tax owed, you would take the amount the stock has increased in value from the time of purchase which was $7,000 x .15 capital gains tax rate = $1,050. Ouch!
|What if you donated this stock directly to St. Paul's instead?|
|Income Tax Savings||$3,600|
|Capital Gains Tax Savings||$1,050|
|TOTAL TAX SAVINGS||$4,650|
Contact Director of Planned & Major Giving Dawn Hartman at 724-589-4611 or email@example.com. Dawn will then reach out to your financial advisor or broker to facilitate your gift. The process is simple and doesn't take long to complete.