Have you ever wondered how Answers in Genesis, the Creation Museum, and Ark Encounter can do what they do? It’s because thousands of believers around the world keep this ministry going through their generous support. Whether it’s through volunteering, hosting a conference, making a one-time gift, or donating through a planned giving option, we are thankful for our supporters and their generosity.
One way you can support us is through the planned giving option of gifts of stock. You receive a charitable deduction for the value of the stock, and Answers in Genesis doesn’t pay tax on the sale of the stock, so you bypass the capital gains tax. This is an especially good idea if you have sold an appreciated asset with a large capital gain or if you have a good income. A gift of stock will offset that gain, helping you save money on taxes.
Here are two stories to show how this works:
Lisa purchased stock 10 years ago and it has increased from her original purchase price of $50,000 to a total of $100,000 in value. She sold half of it and has $50,000 left. Under the IRS rules, she is required to divide her $50,000 cost basis between the half she sold and the half that remains. That means that half of the gain ($25,000) is going to be reported as income this year.
However, if she decides to give the other half to her favorite charity, she will receive a deduction for $50,000. The deduction is based on the value of the stock on the gift date. The IRS calls that value the mean between the high and low sale price on that day. In addition, she will save capital gains tax because she will bypass the gain on the half that she’s given to her favorite charity.
Bill had purchased stock in a company recommended by his son eight years ago. During that time, Bill's $15,000 initial investment grew to a value of $165,000. Bill also had a very good year with a large income. If he gives his stock, he will be able to claim a large deduction. Because he has a high income this year, he can take the full write-off. Plus, by giving the stock he bypasses the gain. While there is a limit of a deduction in one year to 30% of Bill's adjusted gross income, he has a high income this year and is able to take the full charitable deduction.
Learn more or contact us about your gift at GenesisGift.org.