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Supporting ABC and Maximizing Tax Benefits with Gifts of Securities: A Win-Win Situation
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Supporting ABC and Maximizing Tax Benefits with Gifts of Securities: A Win-Win Situation

A gift of stock, bonds, or mutual funds to ABC provides essential revenue to support ABC’s nonprofit educational programs and can provide the donor with greater tax benefits than a cash gift. Regarding appreciating securities, not only can the donor claim a charitable deduction for the full market value of the stock at the time of the gift, but the donor would also avoid paying capital gains tax, provided he or she has owned the stock for at least one year. The tax deduction can equal up to 30% of the donor’s gross income, and larger donations can be carried forward and deducted within the subsequent five years.

If a particular stock has lost value, the donor can also take advantage of tax benefits by selling the stock and making a contribution of the remainder to ABC. The stock’s value at the time of the gift can be deducted, and the donor can claim the loss on his/her annual tax filing, resulting in a lower taxable income.

At the end of 2004, ABC was the recipient of a generous contribution of stock in a Fortune 500 company, helping ABC to continue to provide its high level educational programs. This gift also provided the donor beneficial tax advantages. ABC is willing to receive these gifts with the donor designating the purpose for the gift (i.e., a gift can be made to support a particular educational program or publication, the gardens, physical infrastructure maintenance and improvements, etc.).

Readers are invited to call (800-373-7105) or e-mail Wayne Silverman, PhD, (the Development Department) or Aileen Truax (the Development Department) to discuss the simple process of donating stocks and other securities such as mutual funds or bonds, or to inquire about special gift strategies involving stock options or restricted stocks.

—Aileen Truax

ABC’s Wish List for Item Donations

• One or two 10,000 gallon rainwater collection tanks to augment the current system, which has only one 10,000 gallon tank.

• Support for a solar electric system which would make ABC an independent producer of its own electricity and lower ABC’s annual overhead for power. (For a short time only, the City of Austin will pay for 75% of the system, so ABC needs to provide only the remaining 25%.)

• Mist system for the existing greenhouse.

• Chipper/shredder.

• Tiller.

• Pole saw for tree pruning.

• Television.

• VCR.

• DVD player.

To donate any of these items, please contact Aileen Truax at 800-373-7105 or the Development Department