Printed from ChabadUChicago.com

Gifts of Stocks and Securities

Gifts of Stocks and Securities

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Donating Appreciated Securities is a Great Way to Save Taxes and Support Jewish Life at UChicago.

 

The advantage to YOU of donating stock to Chabad:

When you donate a stock that has gained in value to Chabad, you do not have to pay capital gains tax and you can itemize a tax deduction for the entire amount of the stock.

 Options Sell Stock and Donate Proceeds Donate Stock Directly to Chabad
 Market Value of Stock  $60,000  $60,000
 Original Investment  $10,000  $10,000
 Capital Gains Tax  $10,000  $0
 Total Donation  $50,000  $60,000

For example, say you bought 1000 shares of a stock at $10 a share a couple of decades ago. Now that stock is worth $60 a share. What was worth $10,000 when you bought it is now worth $60,000. Normally, if you sell the stock, you have to pay long-term capital gains taxes on the $50,000 that you made. If you donate the stock to Chabad, however, you are exempt from the capital gains tax.

You can also itemize the entire $60,000 on your taxes. Chabad can choose to sell the shares immediately, for $60,000, without paying taxes (due to its status), or it can hang on to the shares in the hopes that it will yield more down the road.

The following instructions will help you facilitate a gift of stock or securities. (Note: To receive the full tax benefit, stocks must be transferred to Chabad of Hyde Park before they are sold):

Notification of Donor Intent
For the purposes of proper acknowledgment and auditing, either the transferring broker or you must provide the following information:
- Your name and complete address
- The number of shares and name of stock or securities transferred

To Donate Stocks Electronically
Firstrade Securities
Please call or email our office for account number and DTC transfer number.

Rabbi Yossi Brackman
773-218-1108 
rabbi@uchicago.edu 

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