Your HLWA Board of Directors is very appreciative of the many hours of time spent in the support of our mission. They have asked me to write an article describing ways members and friends can support the organization in a financial manner beyond just paying dues and donating their services.

Obviously, the first thing one can do is to write a check to HLWA. As a not-for-profit organization, that contribution is tax deductible for those who itemize their tax deductions. A more unique manner is to donate stock for which you might have sizable accumulated capital gains. A direct donation of stock gives the donor a charitable contribution equal to the fair market value of the stock at the time of the gift. To take advantage of this, you must be in a situation where you are itemizing your tax deductions. For example, you own 1,000 shares of XYZ company and you paid $30 per share. At the time of the gift, the stock is selling for $100 a share. A donation of ten shares gives you a tax deduction of $1,000; however, your real cost is $300 before taxes. You must instruct the company to send the shares directly to HLWA using their EIN number, which can be obtained from your Treasurer, Mike Peacock. If you sell the ten shares and then donate the $1,000 proceeds, you will have to pay capital gains tax on $700. The even greater benefit is your after-tax cost of the gift is $300 less the tax effect of a $1,000 contribution. A person in the 25% tax bracket is given a $250 reduction in their taxes, making the net cost of a $1,000 stock gift just $50 ($300 cost of the stock less $250 tax deduction for a $1,000 donation).

The concept that applies to stock also applies to donated land. No matter what you paid for the land, your tax deduction is the fair market value of the land at the time of the gift. The only requirement with donating land is you are required to have a written appraisal of the land’s value not more than 90 days prior to the gift.