There can be significant advantages to donating appreciated securities to the Entertainment Community Fund.
Did you know you can make a gift of appreciated stock to the Entertainment Community Fund?
Why give stock over cash? If you donate stock that has increased in value since you bought it more than a year ago—and if you itemize deductions—you can take a charitable deduction for the stock’s fair market value on the day you give it away. You’ll also avoid capital-gains taxes on the increase in value over time, which you would have had to pay if you sold the stock then gave the charity the cash proceeds. See table below:
| SCENARIO 1 | SCENARIO 2 | ||||
| Donate stock | Donate cash | ||||
| Contribute securities directly to the Entertainment Community Fund | Sell securities and donate proceeds to the Entertainment Community | ||||
| Fair market value of stock | $50,000 | $50,000 | |||
| Eliminate capital gains and Medicare surtax | Federal long-term capital gains tax (20%) Medicare surtax (3.8%) paid. Assumes cost basis of $20,000 and long-term gains of $30,000 | $0 | $7,140 | ||
| Donate more to the Entertainment Community Fund | Charitable contribution/charitable deduction | $50,000 | $42,860 | ||
| Save more in taxes | Value of charitable deduction less capital gain taxes paid (Assumes donor was in 39.6% federal income tax bracket) | $19,800 | $9,833 | ||
| The end result | Give $7,140 more to the Entertainment Community Fund and double the tax savings. | ||||
In basic terms: the Entertainment Community Fund gets a larger gift, and you get a larger tax-deduction!
It is helpful to us when we know of your transfer ahead of time. To let us know you’re thinking of this type of gift and to get a copy of our stock transfer instructions via email, fill out the simple form below or get in touch with:
Jay Haddad, Manager of Individual Giving
jhaddad@entertainmentcommunity.org
917.281.5928
