The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disaster and help prevent, prepare for and respond to emergencies.
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An Example of Tax-Planned Giving
Take the example of Mrs. J. The
stock she purchased in 1997 for
$200 is now worth $1,000. If Mrs. J
gives the stock instead of cash, the
Red Cross receives a gift of $1,000 –
the fair market value of the stock –
and she can claim a $1,000
charitable deduction on her next
income tax return. In a 33%
bracket, that's a tax savings of $330.
Furthermore, she avoids $120 in
capital gains taxes that would be due
whenever she sold the stock. The
result: After figuring the tax savings,
a gift of $1,000 costs Mrs. J only
$550. The chart below shows the tax
savings from gifts of appreciated
assets worth $1,000 and $5,000 in
the different tax brackets, where the
asset has doubled in value.
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© Copyright 2005 The
American National Red Cross. All Rights Reserved.
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The articles in the issues of the Legacy newsletters are for general illustration purposes only. Information, Gift annuity and tax rates were current as of the time of publication. There can be no guarantee that such information will continue to be accurate in the future. Interested Donors should check with the Gift Planning Office for current rates and deduction amounts before completing their gifts. Calculations of tax deductions will vary based on applicable federal discount rates, which change on a monthly basis. The American National Red Cross is not engaged in rendering legal or tax advisory service. For advice or assistance in specific cases, the services of an attorney or other professional advisor should be obtained. Certain links in this site connect to other Web sites maintained by third parties over whom the American National Red Cross has no control. American National Red Cross makes no representations as to the accuracy or any other aspect of information contained in other Web sites.