There are a variety of ways to support Bideawee. In many cases donors find that providing the organization with a gift of stock has multiple benefits. The example that follows illustrates how a gift of stock to Bideawee can benefit the donor and the organization. If you have questions regarding any donation instrument please contact the Bideawee Development group at 866-262-8133.
Frank and Estelle have been a supporters of Bideawee for years and are looking for a way to give more. They would like to make a gift of $10,000. If Frank and Estelle write a check to Bideawee for $10,000, they will receive a charitable tax deduction. If Frank and Estelle are in the income tax bracket of 35%, they will reduce their taxes by $3500 ($10,000 X 35%). The net cost of the gift to Frank and Estelle is $6500 ($10,000-$3500).
Now, instead of donating cash, Frank and Estelle decide to give $10,000 of publicly traded stock they purchased ten years ago for $2000. They will be able to claim a $10,000 charitable tax deduction, just like for the gift of cash, reducing his taxes again by $3500.
In addition, Frank and Estelle can now avoid paying capital gains tax on the $8000 long-term gain they would have had to pay had they sold the stock, rather than donating it. Assuming Frank and Estelle are in a capital gains tax bracket of 20%, they would have paid capital gains taxes of $1600 ($8000 x 20%).
By donating the stock, they eliminated the tax liability and the net cost of their gift is reduced to $4900 ($10,000 - $3,500 - $1,600).