Giving & Taxes

Almost always, charitable contributions will reduce your taxes. Thus, the higher your tax bracket, the lower the after-tax cost of a charitable contribution. As a result, you may find that you can contribute more on an annual basis than you originally thought. For example:

  • Giving Cash

    If you donate $10,000 to the Foundation, you will receive a $10,000 charitable income tax deduction. If you are in a 35% income tax bracket (federal and state) and itemize your deductions, you will reduce your taxes by $3500. The net cost of your gift will be $6500.

  • Giving Appreciated Securities

    If you donate $10,000 of publicly-traded stock you purchased ten years ago for $2,000, just like a gift of cash, you will be able to claim a $10,000 income tax charitable deduction, thereby reducing your taxes by the same $3,500. In addition, you will avoid paying the capital gains tax you would have paid if you had sold the stock rather than giving it to charity. By giving stock, the net cost of your gift will be further reduced from $6,500 to $5,300.

    Brokerage Firm: Wells Fargo Investments; Account Name: The Sakyong Foundation; DTC #: 0141; Account #: 36294417

  • IRS Definition of Charitable Giving

    For tax purposes, the Internal Revenue Service defines charitable gifts as complete and irrevocable transfers of money, property or other assets to IRS-recognized charities.