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Capital Gains Advantages

The advantages of establishing an ABE Charitable Gift Account with $50,000 in appreciated stock.

  Selling the stock and donating the proceeds directly to charity Donating Stock to the ABE Charitable Gift Fund
Donor's capital gains tax1 $8,000 $0
Value of gift to charity $42,000 $50,000
Tax savings for Donor2 ($15,120) ($18,000)
Donor's "cost" of donation $34,880 $32,000

1Assumes purchase price of stock was $10,000 and a capital gains tax rate of 20 percent.

2Assumes individual income tax rate of 36 percent. Does not reflect effects of certain tax limitations, such as alternative minimum tax, state or local taxes, adjusted gross income limitations, or the limitation on itemized deductions.

"Philanthropy is very important to me and my family. The ABE offers a great vehicle for managing charitable giving called the Charitable Gift Fund (CGF). The CGF allows ABA Members to make a donation for which they receive an immediate tax deduction. When convenient, donors can then recommend donations to other charitable organizations of his or her choosing. ABE handles all the paperwork, so philanthropy becomes what it should be - easy!"

I. S. Leevy Johnson
ABA Member/ABE Director
ABE member since 1968

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