G I F T
P L A N N I N G
Promoting care through
gifts of stock
School has started and the holidays are just around the corner. As the last quarter of 2015 approaches, it is a great time to take
stock of what is important. Many who have been touched by Baylor
Health Care System make year-end gifts to improve the lives of
patients and their families. Combining the desire to give back with
the desire to make their charitable gifts go farther, they choose
gifts of stock.
Did you know giving stock can be more beneficial than
giving cash?
If you make your gift using appreciated securities, like publicly
traded stocks, bonds or mutual fund shares, you will receive additional tax benefits. Since the securities are donated rather than
sold, capital gains taxes from selling the securities no longer apply.
And the more appreciation the securities have, the greater the tax
savings.
How it Works
n You transfer appreciated stocks, bonds or mutual fund shares
you have held longer than one year to Baylor Health Care System
Foundation.
n The Foundation sells your securities and uses the proceeds to
support the Baylor program most special to you.
Benefits
n You receive an immediate income-tax deduction for the fair
market value of the securities on the date of transfer, no matter
what you originally paid for them.
n You pay no capital gains tax on the transfer.
n Baylor receives much-needed funds for patient care, programs
and research that you designate.
EXAMPLE
Linda and Tom purchased stock in 2007 for $10,500. The
stock has appreciated $14,500 since that time and its
current fair market value is $25,000. If they sell the stock,
they will owe capital gains tax on the $14,500 of
appreciation.
A SMARTER IDEA:
If Linda and Tom contribute their stock to Baylor Health Care
System Foundation, they can:
n Make a gift valued at $25,000, the current fair market
value of their stock
n Claim a $25,000 income tax deduction on their 2015
income tax return
n Avoid capital gains tax they would have paid had they
sold the stock
You’re in Good Company
Many friends of Baylor give stock to leverage their investments
in Baylor. Margo Goodwin, chairman, Baylor Health Care
System Foundation Board of Directors, had this to say, “Bill and
I love making our gifts to Baylor using stock. It allows us to make
bigger gifts than if we just grabbed our checkbooks – sometimes
a lot bigger if the stock has significantly appreciated. We use stock
we’ve held a long time that has a low basis. And frankly, it’s a great
way to give because you’re not out the cash – you tend to listen to
your heart, not your pocket book. With a gift of stock, you can
have a greater impact in the areas at Baylor that are most special
to you. Plus, it’s just so easy to transfer stock.”
For more information on gifts of stock or other planned giving opportunities, contact Cynthia Krause at 214.820.7928 or
[email protected] or visit www.baylorhealth-plannedgiving.com.
Baylor Health Care System does not provide legal, accounting or tax advice. Please consult your professional advisors for assistance in these areas.
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