Make A donation of securities to the Westernaires Alumni Association

Some very favorable tax laws exist for donors who wish to give long-term stocks (i.e., stock that they have owned for more than one year) that has appreciated in value. The donor does not have to pay capital gain taxes on appreciated stocks that are donated to qualified nonprofit organizations, like the Westernaires Alumni Association. This can serve as a tremendous tax benefit and great incentive to donors who give stock to nonprofits.

How does it work?

If a person owns for (more than one year) a stock that has increased in value, that person can donate the stock to a nonprofit, get a deduction equal to the fair market value of the stock at the time of transfer (i.e., its increased value), and never pay capital gains tax on the appreciated value of the stock. The no profit will never owe that capital gains tax either. The nonprofit can take the stock and either sell it right away and not pay any tax, or it can hold onto it — but it will not owe the capital gains tax on the appreciated value the donor received.

An example scenario

Jennifer owns 1,000 shares of stock in Acme Corp, which is traded on the New York Stock Exchange. She paid $1,000 for the shares back in 2007, and they are worth $10,000 today. She decides to give the shares to her favorite nonprofit — Westernaires Alumni Association — and deducts its $10,000 fair market value as a charitable contribution on her tax return.

Jennifer need not pay the 15% capital gains tax on the $9,000 gain in the value of the stock. Westernaires Alumni Association sells the stock and pays no taxes on the $10,000 it receives. Had Jennifer sold the stock she would have had to pay $1,350 in long-term capital gains tax on her $9,000 profit (15% x $9,000 = $1,350). This would have left her with only $8,650 in profit from the sale to donate.

Please consult with your tax advisor for more details.  If you have questions regarding any of our donation programs, please email info@westernairesalumni.org

We appreciate you!

A special thanks to all of our generous donors. Thank you for supporting Westernaires and the Westernaires Alumni Association.

Our nonprofit information

For your reference, our United States Tax ID is: 27-1072277

Need a copy of our IRS Letter of Determination for 501(c)(3) status? Click here.