DId you know that giving stock, instead of cash, as a donation can greatly benefit both you and the SEA? If the stock has increased in value from the time of purchase, you can avoid paying the capital gains tax and be able to deduct the full amount of the stock when you donate it to the Cardiff SEA. Likewise, the Cardiff SEA gets the full value of the stock.
Look at the difference between donating the proceeds after the sale of stock versus donating the stock itself: Let's say you bought stock three years ago for $5,000 and it has appreciated to $20,000. If you sold the stock and donated the proceeds, you would get $20,000 for the sale, but then you'd have to pay $3,000 in capital gains tax on the $15,000 gain, leaving $17,000. You'd get to record a $17,000 donation to charity and the Cardiff SEA would get $17,000.
However, if you donated the stock, you wouldn't pay any capital gains. You'd be able to deduct the full $20,000 and the Cardiff SEA would get the full $20,000. A much better value for both! Please note that the IRS does have some requirements before allowing this, the biggest one being that the stock must be held for at least a year and qualify for the "qualified appreciated stock" deduction. Check with your tax advisor or read the IRS Publication 526 to make sure you qualify.
If you're interested in donating stock, email us at email@example.com to make arrangements.