United Way
of San Antonio
and
Bexar County
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United Way of San Antonio and Bexar County is encouraging its donors to consider the possible financial benefits of giving long-term (held at least one year and one day) appreciated securities.
Cost-saving ideas
You can realize two tax savings by contributing stock as a gift to United Way:
1. A charitable deduction - Federal law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income. |
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| 2. Avoiding capital gains tax - Stock contributors may have no tax liability on the difference between what they paid for the donated stock and its current fair market value; i.e., there may not be income tax on the capital gains. |
Here's how it can work for you
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Let's assume, for example, that you purchased 20 shares of XYZ Corporation in 1994 for $250, and that the shares are worth $1,000 today. Also, for this illustration, we will assume you are in the 28 percent federal income tax bracket, in which capital gains are taxed at a 20 percent rate.
Following are comparisons for making a $1,000 gift to United Way that show how a gift of stock might result in a savings of $150 over the same size gift of cash:
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CASH
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STOCK
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| Size of gift: |
$1,000 |
$1,000 |
| Income tax deduction: |
($280) |
($280) |
| Capital gains tax savings: |
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($150) |
| After-tax cost of gift |
$720 |
$570 |
Illustration is based upon tax laws in effect as of December 31, 2000 |
Please note the date of the gift is the day the stock unconditionally passes from your control. The value for income tax purposes of securities held long term is the mean between the high- and low-quoted selling price on that day.
Your gift will be acknowledged by United Way with the date of your gift for tax purposes and whether you received any goods or services in return. |
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A Lasting Gift
United Way invites you to join many thoughtful and caring people who have made gifts of lasting significance to United Way through their estate plans. These gifts may be directed to a special area of concern (i.e., investing in children, battling health problems, helping the elderly, stopping family violence, etc.). |
 For More Information |
Because United Way maintains an account with all major brokerage firms in San Antonio, contributing stock or making a planned gift is as simple as calling us at 352-7013 or 352-7015 or e-mail. Please check with your benefits office to see if your employer permits restricted stock to be contributed to charity.
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