Giving stock is always an option for those who want to support Oregon Right to Life Education Foundation in the life-saving work it does every day. However, gifting stock that has appreciated (grown in value since it was purchased) offers unique advantages. The tax benefits can be substantial and the process is really quite simple.
For example, let’s say Mrs. Donor is considering making a contribution to ORTLEF and she owns stock that has appreciated. She purchased 50 shares of stock at $10 per share many years ago at a cost of $500. Now, those 50 shares sell for $100 per share, for a value of $5,000.
If Mrs. Donor gifts that stock to ORTLEF, the gift value would be $5,000, not the $500 she originally paid. Mrs. Donor avoids the substantial capital gains taxes by transferring the shares to ORTLEF. The IRS permits ORTLEF to sell those appreciated shares without paying any tax. Essentially, Mrs. Donor is “giving the growth” of her stocks to ORTLEF.
You may agree that this is a good idea but worry the process will be difficult. Gifting stock is a common practice and, in most circumstances, easy to complete. There are, of course, a few rules governing this type of donation. It is always best to discuss this with your financial advisor for up-to-date information on how these rules apply to your particular situation. If you decide that a stock donation is right for you, please contact our executive director, Lois Anderson. She may be reached at 503-463-8563 or at firstname.lastname@example.org.