| Sell stock and donate after-tax proceeds | Donate stock directly to a nonprofit | |
|---|---|---|
| Long-term capital gains taxes |
$190,000 ($950,000 x 0.20)
|
$0 |
| Charitable gift and tax deduction |
$810,000 ($1,000,000 – $190,000)
|
$1,000,000 |
| Tax savings |
$109,700 ($810,000 x 0.37 – $190,000)
|
$370,000 ($1,000,000 x 0.37)
|
Disclosure Title
Disclosures
Disclosure
Source: DAFgiving360™. This hypothetical example is only for illustrative purposes. The example assumes an original cost basis for the stock of $50,000 and federal long-term capital gains tax rate of 20%, and an adjusted gross income of $4 million. This example does not take into account any state or local taxes or the Medicare net investment income tax. The tax savings shown is the tax deduction multiplied by the donor's income tax rate of 37%, minus the long-term capital gains taxes paid.