​Donations of Appreciated Securities

​For details on making a contribution of securities to Preschool Advantage, please call (973) 532-2501.
We thought you might appreciate this case study that illustrates the potential benefits of donating appreciated securities as a year-end charitable contribution.

How to make a $5,000 charitable contribution for only $2,200 after tax savings
…..and send a child to preschool
You have $5,000 of XYZ Security
You bought it for $2,500 over 12 months ago
​What happens in this example when you sell your security?

You will pay a total of 32.8% in taxes on your long term capital gain*: $820
You will miss out on a charitable tax deduction savings**: $1,980
​What happens in this example when you donate your security to Preschool Advantage?

You send a Morris County child to preschool for a full year
In 2016, you may be able to save $820 in Long Term Capital Gains Taxes 
You may receive as much as $1,980 as a Charitable Tax Deduction  
You may have qualified to make a $5,000 Charitable Contribution for only $2,200 after savings

*Long Term Capital Gain is calculated for the top income bracket including 9% NJ State Tax and 3.8%
Net Investment Income Tax
**Federal Charitable Tax Deduction savings is calculated based on a Married Couple Filing Jointly in the 39.6% tax bracket

​Disclaimer: This is an oversimplified example of Long Term Capital Gain and Charitable Tax Deduction, with tax rates used assuming the donor is a top-earning NJ resident in 2016.  If you are thinking of making a charitable contribution with stock, please contact your financial advisor and accountant for advice. You should not use this illustration alone to make a charitable contribution decision.