Albert* was founder and sole shareholder of a small technology company he started 30 years ago. At 65, he began thinking about selling the business.
LEARN HOW YOUR PLANNED GIFT CAN HELP THE AMERICAN LEGION
Albert* met with his advisers to discuss his company's value and identify potential buyers. Because the company's client base and product offerings had grown significantly over the years, Albert soon realized that the business would sell for a significant sum.
Albert: "I knew I had a tax problem. If I sold the business, I would lose much of the value to taxes. I needed enough out of the sale so that my spouse and I could retire comfortably.” One adviser recommended that he consider making a gift of some of his stock to his favorite nonprofit organization. If Albert made the gift prior to the sale of his business, he would avoid capital gains tax on that stock and receive a charitable income-tax deduction to further reduce his taxes on the cash he received from the sale.
Albert: "I transferred $1 million in stock to the nonprofit and received a $1 million charitable income-tax deduction. When the company sold, I was so happy I had listened to my adviser and made the gift.” Albert's tax deduction made it possible for him to preserve his wealth by avoiding the payment of substantial capital gains tax on the sale of his business. As a result, Albert was able to use some of the cash from the sale to purchase a condominium and invest the balance for retirement.
What is a gift of stock? Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to The American Legion. You can view a Gifts of Stock and Bonds video here.
Is a gift of stock right for you? An outright gift of stock can provide several tax benefits such as generating a charitable tax deduction and avoiding capital gains tax. Please contact us if you have questions about outright gifts of stock.
*Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization. The American Legion’s Fund Development program, a way of establishing your legacy of support while providing for your current financial needs. Consider naming The American Legion in your will or trust as a part of your personal legacy. Learn more about the process, and the variety of charitable programs you can benefit, at legion.org/plannedgiving. Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information.
- Planned Giving