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More Cost-effective Giving
Gifts to the Foundation for the American West are tax-deductible. The Foundation accepts many kinds of donated assets. Donors are encouraged to
make use of the tax advantages offered by the community foundation by donating cash or appreciated marketable assets.
An example of the increased effectiveness of gifting with appreciated assets is illustrated below:
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Giving Appreciated Assets Versus
Selling Assets & Gifting Cash
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Cash
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Assets*
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Charitable Gift Deductions
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$100,000
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$100,000
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Income Tax Saved (36% Bracket)
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$36,000
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$36,000
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Capital Gains Tax Saved
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N/A
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$16,800**
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“Cost” of $100,000 Donation
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$64,000
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$47,200
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*Assuming cost basis of assets donates: $40,000
**Reflects 28% tax on $60,000 appreciated value.
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When giving appreciated assets, donors
also avoid paying burdensome taxes on the assets’ increased value (capital gains). More money remains available for later gifting to worthy beneficiaries.
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