Have you ever wondered how giving a stock gift to a non-profit actually works?
Read this story from our founder to see how your stock gift works for both you and Cafe 1040.
In January of this year you purchased 100 shares of stock in the Acme Corporation at $15/share. Acme announced they had finally perfected their exploding tennis ball and their shares soared to $75 share. The following quarter they announced they were leaving the anvil market due to lack of market growth and their shares soared again to $100 a share!
If you sold your shares of Acme today at $100 a share, you would receive (100 shares x $100 each) $10,000. $10,000 minus your initial investment of (100 shares x $15 each) $1,500 equals a capital gain of $8,500. Great job! You will now have to pay a capital gain tax on $8,500 to the IRS. Depending on your tax bracket, you will walk away from your Acme deal with no more than $6,000. Not a bad day!
But, if you gave the Acme stock to Cafe 1040 today, you would get a giving receipt for a tax deductible donation of $10,000, and Cafe 1040 would sell that stock immediately and receive the proceeds of $10,000. You pay zero capital gains on this transaction AND get a $10,000 deduction! This is a much better day for you and invests in the mission and vision of Cafe 1040.