STOCK TRANSFERS
A contribution of appreciated securities to the Cardinal Athletic Fund is a unique way to make a charitable gift. By contributing appreciated securities, you can make a meaningful contribution while also gaining valuable tax advantages. If you have owned appreciated securities for at least a year and a day, your contribution can offer the following benefits:
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Stock Advantages Over Cash
Your securities donation can deliver significant tax advantages over a cash donation, allowing you to make a gift at a lower after-tax cost to you. The chart depicts the difference between the after-tax cost of a gift of cash and a gift of stock. Assume that the stock was originally purchased at $250 (basis), the income tax rate is 27%, and the capital gains tax is 20%.
*For tax receipt purposes, actual stock valuation is based on the mean of the highest and lowest price on the day the stock is received by UofL. Gifts of stock will be liquidated when received, and brokerage fees will be deducted from the gross proceeds.
| Potential Stock Benefits | ||
| Cash | Stock | |
| Value of Gift | $1000 | $1000 |
| Ordinary Income Tax Deduction | ($270) | ($270) |
| Capital Gains Tax Savings | $0 | ($150) |
| After Tax Cost of Gift | $730 | $580 |
| NOTE: THIS TABLE IS FOR ILLUSTRATIVE PURPOSES ONLY. ONLY YOUR OWN FINANCIAL OR TAX ADVISOR CAN ADVISE IN THESE MATTERS. |
Also, please notify the CAF at 852-5735 or via email at caf@louisville.edu immediately so we can be on the look-out for the transfer and make sure the gift is credited appropriately.
