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 CashSell Stocks, Pay Tax, Give BalanceGive Stock
Cash/Stock Value$10,000$10,000$10,000
Capital Gains TaxN/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
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