There are many ways to give to KIF1A.ORG outside of making a gift online, including Amazon smile and donating stocks.
Support KIF1A.ORG whenever you shop on Amazon. To do this, note KIF1A.ORG as the organization you’re supporting on smile.amazon.com.
Donating appreciated stock to KIF1A.org is a tax-wise approach to helping us cure children living with KIF1A. Donors choose to make gifts to KIF1A.org using long-term appreciated stocks due to the attractive tax advantages associated with such gifts.
To give shares (stocks, mutual funds, or other securities) your broker can electronically transfer a gift directly to our account at Fidelity Investments. Your broker will need the following information to complete an electronic transfer:
DTC # 0226
Fidelity account number: Z48-704964
To confirm delivery instructions:
212-873-5784 Ext. 50583
- Avoiding federal and state tax on the capital gain;
- Receiving an income tax deduction (federal and most states) for the full market value of the gift if you itemize deductions on your tax return and have held the assets one year or longer;
- Making a larger gift at a lower original cost to you.
An Example of How it Works
If you purchased stock for $1,500 several years ago that’s now worth $5,000, and you sold it for a capital gain of $3,500, you could donate it to KIF1A.org, who could then, according to the Tax Code be permited (as a “Section 501(c)(3)” charitable institution) to sell the stock without having to recognize the capital gain.
If you donate the stock directly to KIF1A.org, you will avoid paying federal capital gains tax of $525 ($3,500 x 15% = $525). And let’s assume you live in one of the states that also taxes capital gains. Assuming a 5 percent state capital gains tax rate*, you would avoid an additional $175 ($3,500 x 5 percent = $175) in taxes. This results in a total capital gains tax savings of $700.
Let’s further assume you fall in the 28 percent federal income tax bracket. By itemizing your deductions, you are eligible to take a $5,000 charitable income tax deduction that saves you an additional $1,400 ($5,000 x 28 percent = $1,400) of federal income tax for the tax year you made the gift. If your state allows you to deduct charitable gifts, you can also save on your state income taxes. Assuming a 5 percent state income tax rate, this results in an additional savings of $250 ($5,000 x 5 percent = $250) for you.
In this hypothetical example, by making a stock or mutual fund donation, you are able to make a $5,000 gift that generates a total tax savings of $2,350. A direct contribution of $5,000 in cash would generate an income tax saving of $1,650. And if you were to sell the securities first and then donate what’s left after paying taxes, you would only be able to donate $4,300 ($5000 less $525 + $175), which would generate income tax savings of $1,419 ($1,204 + $215). Donating long-term appreciated securities is clearly the tax-efficient way.
For instructions on donating appreciated stock to KIF1A.org, please email give@KIF1A.org or call 212-896-2925.
KIF1A.ORG, INC is a 501(c)(3) nonprofit corporation. All donations are tax deductible to the extent of the law. EIN: 82-071472