A tax-efficient way to help animals
Donating investments—especially appreciated securities—can be an effective and tax-efficient way to support PAWS Atlanta. The following example for a $10,000 gift highlights why gifting appreciated stock may be an option for you to consider.*
Example 1: $10,000 Cash Donation
Cash contribution: $10,000
Marginal tax rate: 37%
Income tax saved: $3,700
Estimated after tax cost of gift: $6,300
Example 2: $10,000 Donation of Appreciated Stock
FMV of stock: $10,000
Amount paid for stock: $5,000
Income tax saved: $3,700
Capital gains tax saved ($5k x 20%): $1,000
Investment income tax saved ($5k x 3.8% Medicare surtax): $190
Estimated after tax cost of gift: $5,110
The donor saves $1,190 by donating stock rather than cash.
If you have questions, or to notify PAWS Atlanta of your stock gift, please contact Suzie Sloan.
*Source: The Community Foundation for Greater Atlanta and Charitable Donations: The Basics of Giving