Giving to UW-Stout through gifts of appreciated securities

Giving to UW-Stout through gifts of appreciated securities

Commitments from alumni, friends, businesses, foundations and others help to support UW-Stout. Such generosity enables the institution to continue to provide resources and initiatives not funded by state support.

These gifts add an extra dimension and are critical to all academic programs at the university. Donors make a difference in the lives of everyone on campus. The following information on Gifts of Appreciated Securities may help you accomplish your goal of donating funds to UW-Stout.

Gifts of appreciated securities
It is often more tax-wise to contribute securities than cash. If you have appreciated securities, giving them instead of cash to your favorite charity offers a two-fold tax savings. In addition to a charitable deduction for the full fair market value of the securities on the date of the gift, you may avoid any capital gain tax on the appreciated securities.

For example: Mr. and Mrs. Doe, who are in the 31 percent income tax bracket, own securities currently valued at $12,000 which were purchased for $2,000. They contribute the securities to the Stout University Foundation and realize a $12,000 charitable deduction, which saves them $3,720 in income taxes (31 percent of $12,000). In addition, the Doe's avoid capital gain tax on their paper profit for a further tax savings of $2,800. Therefore, the net cost of their $12,000 gift of appreciated securities is only $5,480. The net cost of the gift may be further reduced because of state tax advantages also.

Gifts of appreciated stock are fully deductible up to a maximum of 30 percent of your adjusted gross income. Any amount in excess of the 30 percent ceiling can be carried forward for five years. The securities must have been held for a "long-term" period (this generally means for more than one year) to qualify for these significant tax savings.

The Stout University Foundation will be happy to answer any of your planned giving questions. Please contact:

David Wiensch, Planned Giving Officer
Stout University Foundation Inc.

Outlook Winter '96