213.624.9258

TAXWISE GIVING
Gifts of Appreciated Securities

The $10,000 Gift That Costs Only $4,850

What is the best thing anyone can give away to support The Midnight Mission and those it serves? Tax-wise the answer is securities that 1) have gone up in value and 2) have been owned more than one year.

Donors who give highly appreciated stocks and bonds receive a double tax benefit that can increase the impact of their generosity. As shown in the table below, you can deduct the full fair market value of your securities — not just what you paid originally – and you save again by avoiding all capital gains taxes on their “paper profits.”

Mutual fund shares, including bond mutual funds, can be given with the same beneficial effect as listed and actively traded stock.

Further, as a result of recent tax changes in the American Taxpayer Relief Act of 2012, tax savings for gifts of appreciated securities can be even higher for donors who owe the new 3.8% net investment income tax or pay capital gains tax at a 20% rate.

Tax Savings from Giving Stock worth $10,000 that originally cost $5,000


*Includes 3.8% tax on net investment income.
**Includes 3.8% tax on net investment income, plus a 20% capital gains tax rate.

If you decide to make a tax-wise gift of publicly-traded securities, we can assist you with an electronic transfer from your brokerage account to The Midnight Mission. It is a simple process that can be completed in a short period of time.

If you decide to make a tax-wise gift of mutual fund shares more time will be required to complete the transaction. Transfers can take from two to six weeks, but we will work closely with you and your account manager to ensure your gift is completed before December 31st.

For more information on gifts of securities and mutual fund shares, please call:

213-624-9258 ext. 1125 or 1262