Trinidad State College Foundation

Tax-Wise Philanthropy

Appreciated securities – stocks, bonds, mutual fund shares – are excellent options to consider when making a gift to Trinidad State College Educational Foundation.  They offer tax advantages that may not exist when donating cash. 

To illustrate the impact, please consider the following for a donor in the 24% tax bracket:

Cash Gift
$10,000 – Charitable donation (cash gift)
$2,400 – Federal income tax deduction
$7,600 – After-tax ‘cost’ of gift

Gift of Appreciated Stock
The tax benefit above can be increased by donating appreciated securities instead of cash.  Consider a gift of stock with a $10,000 current market value, purchased years ago for $2,000:

$10,000 – Charitable donation (appreciated stock, cost basis of $2,000)
$2,400 – Federal income tax deduction (24% marginal income tax bracket)
$1,200 – Capital Gains tax not paid (15% long-term Capital Gains tax rate, applies if stock is sold)
$6,400 – After-tax ‘cost’ of gift

In this example, a donor avoids paying capital gains tax on the stock’s appreciated value, but still enjoys a charitable deduction for its full fair market value.

For more information about the Society of 1925, please visit http://trinidadstate.edu/1925/, or contact Toni DeAngelis at toni.deangelis@trinidadstate.edu or 719-846-5520. All inquiries will be held in confidence, and there is no expectation or obligation to complete any gift.