Gifts of stock can provide you with potential tax advantages while supporting College Prep's students and teachers.
While making a gift of cash is the simplest and fastest way to donate for many, College Prep also accepts appreciated securities. With this type of donation, the deduction you get could be greater than if you were to sell the shares and donate the cash proceeds. When you give appreciated securities, you may avoid paying the capital gains tax. Talk to your financial and tax advisers to review your personal situation.
How do I donate appreciated securities? The process is simple! Provide your stockbroker with the stock name and number of shares you would like to contribute, along with College Prep's account information. Click here for the School's Securities Gift Form.
How does one benefit? A College Prep community member wants to donate $5,000 to the School. They purchased stock for $1,000, which they have held for a year or more, and is now worth $5,000. The two examples below show the potential tax implications:
Questions? If you have any questions about College Prep's Annual Fund, please contact Ingrid Ray, Associate Director of Development/Director of Annual Giving: 510.420.2353 or firstname.lastname@example.org.
Donation of Cash School receives: $5,000 Donor cost: $5,000 + capital gains
Donation of Appreciated Securities School Receives: $5,000 Donor Cost: $3,660
Tax Savings = $3,340 (20% Federal capital gains* + California capital gains rate**)
Cost (after tax savings) =$3,660
* For capital gains tax savings, stock must be held by the donor for at least a year prior to the donation. ** Assumes donor is in the top California tax bracket