WEEF-Contribute: Stocks, Bonds and Securities

Under current tax law, if you've owned a stock for more than 12 months and you sold the stock, you would pay capital gains taxes on the difference between what you paid for the stock and its current value. Current capital gains tax rates are 10% for those in the 15% Federal ordinary income tax bracket and 20% for those in the 28% Federal tax bracket. If you've owned the stock less that 12 months, the gain is treated as ordinary income. If you make a gift of the stock BEFORE you sell it, you can avoid the capital gains tax and claim an income tax deduction for the fair market value of the stock, for an amount up to 30% of your adjusted gross income.

To make a gift of securities, simply inform your brokerage trading company or your broker that you wish to make a gift of NUMBER OF SHARES OF XYZ COMPANY STOCK to the Wisconsin Environmental Education Foundation. The brokerage house transfers the stock into a brokerage account owned by the Wisconsin Environmental Education Foundation and the Foundation sells the stock.

Example

Jane usually gives $1000 per year to the Wisconsin Environmental Education Foundation. She owns a stock that she bought 5 years ago for $10,000 which is now valued at $50,000. If she sold the stock, she would pay capital gains taxes on $40,000. At the 20% capital gains tax rate, this would amount to $8,000 of income tax! Jane decides to give the stock to the WEEF. Jane transfers the stock into an account owned by the Wisconsin Environmental Education Foundation and the stock is sold. She gets an income tax deduction for the market value of the stock equal to the average trading price of the stock on the day the transfer was made AND she avoids paying any capital gains tax.

Other Planned Giving Options

Stock/Bonds/Securities