The Justice Love Foundation

Increase your gift to the Foundation—and your tax deduction—with a simple strategy. Contact our Team for additional assistance.

 

 

Donating Restricted and Controlled stock to The Justice Love Foundation

Why donating restricted and control stock directly to charity can create a larger gift.

Why Donate Restricted or Controlled Stock

Instead of selling restricted or control stock and donating the proceeds, it can be more efficient to donate the stock directly to a public charity. This simple change generally results in three significant benefits, for you and for the charity:

  1. You may generally be entitled to take an income tax deduction for the fair market value of the stock (assuming it is appreciated and has been held for more than 1 year).
  2. You can potentially eliminate the capital gains tax on the contributed shares by contributing these shares directly to a public charity like The Justice Love Foundation.
  3. The Foundation will typically end up with a larger gift than it would if you were to sell the stock and contribute cash. The Justice Love Foundation is generally exempt from capital gains tax so the full value of your gift goes to the Foundation.

This assumes the stock has been vested, fully paid for and held for more than one year.

This assumes the donor is itemizing. Thirty percent AGI limit. Other limitations on itemized deductions may apply.

This assumes all realized gains are subject to the maximum federal long-term capital gains tax rate of 20% and the Medicare surtax of 3.8%, and that the donor originally planned to sell the stock and contribute the net proceeds (less the capital gains tax and Medicare surtax) to charity.

How does it work?

When you contribute restricted or control stock to the Foundation, as opposed to selling the stock and donating the cash proceeds, your tax deduction and your charitable gift may increase by up to 23.8%.   

Tax benefits of donating stock to our Foundation

By contributing long-term appreciated restricted stock directly to a our Foundation, you are generally entitled to a deduction of up to 30% of adjusted gross income (AGI), potentially allowing for a greater tax benefit and larger charitable gift than contributions of stock to private foundations, which are generally deductible at only 20% of AGI.

  • As a “control person” in the company, the individual is subject to Rule 144 public sale restrictions.
  • The individual may be exempt from holding period requirements under Rule 701.
  • The individual and recipient charity must gain approval from the company’s general counsel to sell or transfer the shares at acceptable times.

Donating Restricted and Controlled stock to our Foundation: It’s an excellent choice

  • Provide more money to charities
  • Minimize capital gains tax exposure 
  • Take a tax deduction

 

Let Our Donations Team Assist with a Plan

Nearly half of high-net-worth donors do not take advantage of tax-saving methods that could help them save and give more. Let our Donations Team help you with the opportunity to position yourself by having a quick conversation on the best structure for charitable giving to the Foundation. Please take your time and submit your questions below, we will respond as quickly as possible.

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