Lake Chapala Unitarian Universalist Fund, Inc. (LCUUF, Inc.), a U.S. 501(c)(3) charitable organization, now has a U.S. brokerage account with Charles Schwab. This means that you can donate appreciated stocks directly to LCUUF, Inc. with significant tax advantages.
I would like to express appreciation to a donor who initiated the process of obtaining a brokerage account and who has already transferred stock totaling USD $100,985.67 to LCUUF, Inc.’s brokerage account in March 2021.
Tax Issues: For U.S. taxpayers, if you have shares that have appreciated in value, you pay capital gains tax on the gain when they are sold. However, if you donate the appreciated shares directly to a 501(c)(3) charitable organization, the benefits are:
- The donor does not pay capital gains tax.
- The charitable organization does not pay tax if the share are sold.
- We would like to encourage members and friends of LCUUF to consider donations of stock to LCUUF, Inc.’s brokerage account.
For further explanation of the U.S. tax issues, see:
- https://www.investopedia.com/ask/answers/07/donatestock.asp
- https://www.cocatalyst.org/articles/how-to-deduct-appreciated-stock-donations-from-your-taxes
- https://www.schwab.com/resourcecenter/insights/content/charitable-donations-the-basics-of-giving
Of course, you should discuss this with your own financial or tax advisor before proceeding.
Questions may be directed to Lorna Dean, Treasurer of LCUUF and LCUUF, A.C., 376-766-6112 or [email protected]
April 2021