Many individuals hold tightly-appreciated securities such as stocks and mutual funds, and find that because of the capital gains tax, it is counterproductive to sell these securities.  If you contribute those securities to AOTF, you can avoid the capital gains tax on the securities, and claim a charitable tax deduction.  That's right, you enjoy a double tax benefit. Here is how it works:

You purchased 100 shares of company XYZ for $10 a share two years ago.  Your base cost is $1,000. Today, shares of XYZ are selling for $50 a share, therefore, the market value of your shares of stock is $5,000.  If you contributed those shares of stock to AOTF, you would be entitled to a charitable tax deduction of $5,000.  Assuming you are in the 28% federal tax bracket, you would receive a tax savings of $1,400.  You will also avoid costly capital gains taxes since gifts of marketable securities to charity are not subject to a capital gains tax. With a federally long-term capital gains tax of 20%, you could save an additional $800 on your tax bill. The end result is a $5,000 gift to AOTF and savings of $2,200 on your tax bill. And that does not even include the potential savings on your state taxes!

It's that easy. If you are interested in exploring the possibility of contributing marketable securities, please contact your tax advisor or the AOTF Advancement Office by email or by phone at (301) 652-6611 x2550.

The examples cited in this home page are for illustrative and informational purposes only. Your personal situation may differ. Please consult your tax or legal advisor about your particular situation.

The American Occupational Therapy Foundation is a 501(c)(3), charitable, non-profit organization. Gifts to AOTF are tax-deductible to the extent allowed by law.