The following chart shows the net results for three options the Browns have for funding their endowment:
Endowment Options | Option1 | Option 2 | Option 3 |
Give $10,000 Cash | Sell Stocks, Pay Tax, Give Balance | Give Stock | |
Cash/Stock Value | $10,000 | $10,000 | $10,000 |
Capital Gains Tax | N/A | $1,200 Paid | $1,200 Saved |
Saved or Paid | |||
Ordinary Income | $2,500 | $2,200 Saved | $2,500 Saved |
Tax Saved | |||
Net Tax Savings | $2,500 | $1,000 | $3,700 |
Net Given | $10,000 | $9,000 | $10,000 |
to Endowment |