BENEFITS OF GIVING

Stocks
Bonds
Mutual Funds

GETTING STARTED

If you are interested in giving a gift of Stock, Bond, or Mutual Fund to Carroll Health Foundation, contact us or your financial advisor for assistance with the necessary details.

Gifts require a special form to be filed with the IRS. It is form 8283, "Noncash Charitable Contributions". This form should be attached to your annual income tax return (Form 1040). You must file this form if the amount of your deduction for all non-cash gifts exceeds $500.

Charitable gifts made on or before December 31st each year are considered deductible in that year. Larger gifts may help you qualify to itemize your deductions. The charitable deduction is one of the few deductions still available and perhaps the most flexible for tax planning purposes.

GIVING OF STOCKS, BONDS, AND MUTUAL FUNDS

Numerous changes have been made by Congress regarding federal income tax laws. Understandably, you may be unsure about how these changes may affect you and your tax deductions. If you have securities such as stocks, bonds, or mutual funds that have a highly appreciated value, this brochure is designed to help you understand what some of your options may be in avoiding unnecessary capital gains taxes while benefiting the charity of your choice.

CASH DONATIONS OR STOCK?

Yes, Carroll Health Foundation accepts cash donations as well as gifts of Stocks, Bonds, or Mutual Funds. By giving a gift of Stocks, Bonds, or Mutual Funds, you are parting with dominion and control of the stock to the Foundation thus eliminating the capital gains taxes you would have owed had you sold it.

UNDERSTANDING THE BENEFITS

A stock is said to be highly appreciated if it is valued at a higher rate now than when you originally purchased it. By giving a gift of stock to Carroll Health Foundation, you generally receive a full deduction of the entire value of the asset, while avoiding the capital gains tax which would have been due had you sold it. To explain further using a real life example:

Mrs. Jones pays 31% taxes on her ordinary income and 28% taxes on her capital gains. She has stock worth $5,000 for which she originally paid $1,000. She is now considering making a gift of an amount equal to the value of her stock. To further simplify Mrs. Jones' options, the following chart illustrates the difference in her cost with the following three giving options:

(1) Sell the stock and give a cash donation

(2) Give a cash donation

(3) Give highly appreciated stock to charity

As you can see by the illustration, Mrs. Jones benefits the most by option (3). This option allows her to give a $5,000 gift which only costs her $2,330. She receives a deduction of the full value of the stock and also avoids tax on the capital gain in the stock. So, in effect, she saves taxes twice by giving the appreciated stock.

GIVING THE GIFT

A gift of stock is considered complete when a stock certificate is unconditionally given to Carroll Health Foundation. Unconditionally, means that you give up your voting rights and any other rights or benefits of the stock. If you mail the certificate, the gift is complete on the day you mail it to us.

You must own your stock for a minimum of (1) one year before you are able to take a full deduction of the stock's fair market value.

Stocks do not need to be appraised as long as they are listed on an exchange which publishes quotations daily or regularly traded in national or regional over-the-counter markets. Securities, which are shares of a mutual fund, should have quotations published on a daily basis in a United States newspaper.

Your consideration of a gift of Securities to Carroll Health Foundation is appreciated.

For more information or to obtain other Foundation planned giving materials, call (870) 423-5245.

Carroll Health Foundation is a non-profit supporting organization of St. John's Hospital - Berryville. St. John's Hospital - Berryville is a private, non-profit hospital accredited by the Joint Commission on Accreditation of Healthcare Organizations and is affiliated with St. John's Health System-Springfield, MO.

A Service of
CARROLL HEALTH FOUNDATION
"Supporting St. John's Hospital - Berryville"

email:cweir@sprg.mercy.net

(870) 423-5245 or (800) 827-3355, ext. 55245