Donate Stocks or Mutual Funds
A great, tax-wise way to help our library fund
A gift of stock (or other securities) may provide more benefits than a cash gift. When you make a gift of stock to the UVLF, by eliminating the capital gains tax that would be due upon selling the stock, you receive tangible tax-savings and benefits while also supporting an important, forever gift to your family and Union Vale neighbors, a new library...a new community center!
A gift of stock may be right for you if:
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You are holding stocks that have risen in value. If your stocks, bonds, or mutual funds are highly appreciated, you may find yourself with a hefty tax bill when it comes time to sell. By using these securities as a gift, you can avoid the capital gains tax on any paper profit.
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You would like to maximize your deduction while not affecting your liquidity. If you decide to make a gift of stock, you not only retain your cash assets, but you also receive a charitable tax deduction for the full fair market value of the stock that you’ve owned for more than one year.
STOCK / MUTUAL FUND DONATION TRANSFER INSTRUCTIONS
Securities can be gifted to the Union Vale Library Fund in two ways - electronically or physically mailing certificates. Either method is acceptable, but it is necessary for you to contact your broker to initiate the transfer.
If Sending Electronically:
Ask your broker to donate through:
Charles Schwab
DTC Number: 0164
ACCT Name: Union Vale Library Fund, Inc.
Tax ID# 87-1484913
ACCT Number: 7918-8774
If Sending by Registered Mail:
If you have stock certificates to donate, they should be UNENDORSED certificate(s) and will transfer with with a stock power form. Please begin the Donation Process by clicking the button at the bottom of this form and we will assist you with this process.
Thank you for considering a gift to support the Union Vale Library Fund! For further information or assistance in donating stock or mutual funds please email us at plannedgiving@uvlf.org and we will contact you promptly.
*For certain contributions of a complicated nature, a tax strategist should be consulted to convey all applicable IRS guidelines
Case Study
Making a larger gift while increasing tax savings
To illustrate the benefits of donating appreciated securities, consider Jane, who purchased 1,000 shares of publicly traded stock XYZ five years ago at $5 per share. This gives her a cost basis of $5,000 in the stock.
Jane plans to sell her entire position in XYZ and donate the net cash proceeds to a public charity like UVLF, as shown in Option 1. Assuming a 15% federal capital gains tax rate based on Jane’s income level, if Jane sold the stock she would realize appreciation of $45,000 and owe an estimated $6,750 in federal capital gains taxes ($45,000 x 15% = $6,750). After paying the federal capital gains taxes, Jane’s estimated net cash available for charitable giving is $43,250.
Now let’s review Jane’s benefits from gifting her stock directly to a public charity like UVLF, as shown in Option 2. In this scenario, Jane may be able to eliminate capital gains taxes ($6,750) while potentially claiming a current year income tax deduction for the fair market value of her stock ($50,000) *, assuming she itemizes her deductions.
Disclosure: This hypothetical example is only for illustrative purposes. The example does not take into account any state or local taxes or the Medicare net investment income surtax.
Resources
What is the Federal Capital Gains Tax?
The short-term capital gains schedule matches the schedule for ordinary income, and your marginal and effective rates depend on your income and marital status.
Click HERE for Short Term Federal Capital Gains Tax Rates for 2024
Long-term capital gains, meanwhile, are taxed at a lower rate than ordinary income. Here, too, the precise rate depends on the individual’s income and marital status.
Click HERE for Long Term Federal Capital Gains Tax Rates for 2024
What Is The New York Capital Gains Tax?
New York taxes capital gains as income and the capital gains tax rate reaches 10.9%.
Click HERE for New York Income Tax Rates for 2024
An additional Medicare tax of 0.09% is applied to higher income earners.
Click HERE for Medicare Surplus Tax Information (on earned income)
The Affordable Care Act of 2010 included a provision for a 3.8% "net investment income tax," also known as the Medicare surtax, to fund Medicare expansion. It applies to taxpayers with unearned income above a certain modified adjusted gross income (Magi)
Click HERE for Medicare Surtax Information (on unearned income)