Securities

Stocks, Bonds, Mutual Funds, GIC’s
This is a popular way to make a planned gift.  It is easy to do and the financial incentives are substantial.  In some ways, donating securities can be smarter than donating cash.
Here is a sample scenario:  you wish to donate $50,000 to the Church through the parish or the Archdiocese.  Let’s assume you bought $25,000 in stocks a decade or two ago and they are now worth $50,000.
Option A:  Sell the stock and donate the cash.  If you simply sell the shares, you have a capital gain of $25,000.  There is a capital gain of $25,000.  There is a capital gain tax that must be paid (up to 46%), that would result in tax savings of around $11,500.  Net cost to donation $50,000:  $38,000.
Option B:  Donate the stock.  You get to claim the entire $50,000 as a tax deduction and you don’t have to pay any capital gain tax.  The tax savings would be around $23,000.  Net cost to donate $50,000:  $27,000.