When you donate appreciated securities to AEI, you avoid the capital gains tax and receive a federal income tax charitable deduction for the full market value of the securities. You must have held the securities for more than twelve months, and your total donations of appreciated securities may not exceed 30 percent of your adjusted gross income in the year the gift is made (with a five-year carryover for the excess).
Because of the potential double tax savings, a gift of appreciated securities usually has a lower after-tax cost than an equivalent gift of cash. For example, let us assume you are in the top federal income tax bracket and own stock worth $10,000, which you bought for $2,000 and have held for longer than twelve months. If you sold the stock, you would be liable for $1,200 in capital gains tax on the $8,000 gain. By giving the stock to AEI, you pay no capital gains tax and may receive a $10,000 charitable deduction, saving you as much as $3,500 in income taxes. Your tax savings are even greater if you factor in state and local income taxes.
Other ways to give:
For further information contact Nicole Ruman Skinner, AEI's director of marketing, at 202-862-7189 or development@aei.org.
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