Wednesday, July 22, 2015

Why donate appreciated stock

You may recall that last year we announced that the XLH Network is now set up to receive donations of appreciated securities (stock). Perhaps you're already more financially savvy than most, and understand why that can be a useful financial planning tool, but for the rest of us, we've got a bit of explanation.

Why Making a Gift of Appreciated Securities Makes Sense. In making a gift of appreciated securities, such as stocks, bonds or mutual fund shares, donors can make sizable contributions to the XLH Network and simultaneously derive practical financial advantages. Donors who have experienced growth in their investments are in an excellent position to donate appreciated securities.

How It Works to Your Advantage. Let’s say that 10 years ago, you purchased $500 worth of stock, which has a value today of $5,000. If you choose to sell the holding in your account, you will be responsible for paying tax on the $4,500 capital gain. However, if you are inclined to make a charitable gift, you can transfer the security outright to a charitable organization, rather than selling the security first, triggering the tax, and then contributing the cash. By gifting the security, you will avoid the capital gains tax and will have made a generous contribution to the charitable organization. You will, of course, also receive an income tax deduction based on the mean price of the security on the date of the gift.

How It Works at the XLH Network. Giving appreciated securities is easy! First, it is important that you contact Geoff Edelson, Treasurer, at to inform us of your intention to give securities. Then, electronically transfer shares into the Network’s account:
First Clearing, LLC
DTC #: 0141
Account Name: The XLH Network, Inc.
Account #: 7948-5790
Contact:      Chris Inman
Inman Wealth Management
Wells Fargo Financial Network
140 Mayfair Rd., Suite 400
Hattiesburg, MS  39402
Tel:  601-602-3571
Fax:  601-602-3867

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