Monthly giving equals ministry sustainability*
Did you know that when you sell shares – even to donate the proceeds to charity – a significant portion will be taxed? This reduces the impact of your donation because 50% of the shares’ appreciated value is forfeited as tax.
When you transfer ownership of your shares to Impactus, no capital gains tax is paid. Because our broker liquidates donor-transferred shares, the full value of your gift goes to our efforts for life – not the government.
How It Works
Scenario: you purchased stock for $7,000 and over time, the value of the stocks rose to $25,000. The capital gains of your investment would be $18,000.
If you were to sell the stock, tax on the capital gains would be approximately $9,000 (based on a 50% tax rate). Whereas if you donate the stock in-kind, directly to Impactus, you would pay $0 income tax on the capital gains.
The cost of donating the shares directly to Impactus would save you $4,500. See below for a detailed breakdown.
Tax on Capital Gains
| Sell Shares & Donate Cash | Donate Shares In-Kind | |
|---|---|---|
| Current Value of Shares | $25,000 | $25,000 |
| Less: Cost of Shares | -$7,000 | -$7,000 |
| Capital Gains | $18,000 | $18,000 |
| Taxable Portion of Capital Gains (50%) | $9,000 | – |
| Taxable Portion of Capital Gains (0%) | – | $0 |
| Income Tax on Taxable Portion of Capital Gains (50%) | $4,500 | $0 |
Total Cost of Donation to You
| Sell Shares & Donate Cash | Donate Shares In-Kind | |
|---|---|---|
| Amount of Donation | $25,000 | $25,000 |
| Add: Income Tax | $4,500 | $0 |
| Less: Value of Donation Tax Credit (50% of Amount of Donation) | -$12,500 | -$12,500 |
| Cost of Donation | $17,000 | $12,500 |
* Disclaimer
Donors are encouraged to seek independent professional advice when a proposed gift may significantly affect their financial position, income, tax obligations, or relationships with family members.
Inspire.FM does not provide legal, financial, or estate planning advice, and all donors are responsible for ensuring their contributions align with their personal circumstances and intentions.
