Donor Information
The Zac Felkey Memorial Foundation is organized as a 501(c)(3) nonprofit charitable corporation. Individuals giving to 501(c)(3) organizations that are either public charities, private operating foundations, and certain private foundations may deduct contributions representing up to 50% of the donor's adjusted gross income if the individual itemizes on his tax returns. Corporations may deduct all contributions to 501(c)(3) organizations (regardless of foundation status) up to an amount normally equal to 10% of their taxable income.
In addition to the donation of cash, you may receive tax advantages by donating stocks or mutual funds. When you donate stock or mutual fund shares you have held for more than one year, you may deduct the full current market value of the investment on your tax return and avoid paying capital gains tax on the appreciated value.
As an example, let’s suppose your portfolio holds shares of stock you bought five years ago for $2,000 that are now worth $10,000. If you donate the securities instead of selling them, you get a deduction for the stock’s current market value, plus you avoid paying the 20 percent long-term capital gains on the $8,000 your initial investment has gained. And, the charity receives the full $10,000 value of your donation.
To qualify for this special tax benefit, you must have held the shares for more than one year. If the shares have been held for one year or less, your charitable deduction is limited to the price you originally paid. Also keep in mind that your charitable deduction of appreciated property is limited to 30 percent of your adjusted gross income.
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