As a potential donor, you may not be aware of a potential tax benefit you can receive when giving appreciated stock - rather than just cash - to a 501(c)(3) not-for-profit organization — The Equipment Leasing & Finance Foundation. We recommend you consult your tax adviser before making a stock donation to the Foundation.
For instance, let's say you are interested in donating $10,000 in cash to the Foundation. In return, you will receive a charitable deduction based on you tax bracket.
Let's further assume you, the contributor sold $10,000 worth of stock, which was purchased one or more years ago for $2,000. Then, after the sale, you pulled out your checkbook and wrote a check for $10,000 to the Foundation.
The result for the Foundation is the same, but not for you, the donor who sold the stock to make the donation. You are going to have to report a capital gain of $8,000 and generally pay a federal capital gain tax of 20 percent or $1,600, as well as state tax.
On the other hand, if you give the stock directly to the Foundation, the Foundation will receive the same $10,000, but you, the donor would be exempt from paying any capital gain tax and receive an income tax deduction for stock donations.