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Stock donations

Tax efficient ways to donate stock to the IMF

03.16.16

Did you know you could donate stock and let Uncle Sam help find a cure for Myeloma? 

If you donate stock owned for more than a year that has a capital gain, you get a full charitable donation credit for the value of the stock on the date it is received by the IMF*.  You avoid paying any taxes on the capital gain!

For example, if you want to donate $10,000 to the IMF and you own 10 shares of Company X stock that you bought at $35 per share and is now worth $100 per share, you could sell the stock and send cash, but you would be liable for taxes on the capital gain of $5,000.  At a 25% tax rate, you would owe the IRS $1,250, leaving you with a net $8,750.  By directly donating the stock, your donation is $10,000 and you do not owe taxes on the capital gain.

*Stock held for less than one year does not qualify for this tax treatment.  Please consult your tax advisor for the most current IRS rules.

IRA DONATIONS

Donating stocks with long term capital gains

As another example, you can make an IRA Gift Transfer!  Congress restored the IRA gift option for donors age 70½ and over.

President Obama has signed a new law ''Protecting Americans from Tax Hikes Act of 2015'' which includes the provision to permanently restore the law that allows donors to make charitable gifts from their IRA accounts during tax year 2015 and beyond without incurring income tax on the withdrawal. So, if you are age 70½ or older and are required to take minimum withdrawals and you do not need them for personal use, this may be a great way to make a gift to one or more qualified charities for tax year 2015 and beyond. While you cannot claim a charitable deduction for IRA gifts, you will not pay income tax on the amount.

Benefits--Qualified charitable distributions:

  • Can total up to $100,000 in each tax year (if your spouse has a separate IRA account, you can each contribute up to $100,000 per tax year);
  • Can be excluded from your gross income for federal income tax purposes on line 15a of Form 1040 (no charitable deduction is available, however);
  • Can be used to satisfy your Required Minimum Distribution (RMD);
  • Are not subject to the 50% deductibility ceiling or the 2% rule.

How To Qualify:

  • You must be age 70 ½ or older at the time of the gift.
  • Transfers must be made from a traditional or Roth IRA account by your plan provider DIRECTLY to the charity. Funds that are withdrawn by you and then contributed do NOT qualify.
  • Gifts from 401k, 403b, SEP and other retirement plans do not qualify.
  • Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.

If you would like to donate stock or make an IRA gift transfer, you will have to contact your bank or broker and provide them with our investment account information as follows:

Morgan Stanley Smith Barney
21250 Hawthorne Blvd., Ste. 650
Torrance, CA 90503-5517
DTC # 0015
Account # 209-001015-562
Account Name: International Myeloma Foundation
Account Representative:
Robert Vogelsang, Vice President Investments
Tel: (310) 543-0242

For more information, please contact Randi Lovett at rlovett@myeloma.org,
or call us at 800-487-7455, ext. 245.


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