CASH GIFT

When you make a "cash" gift to the Society, the gift is fully tax deductible. Remember, a gift is deductable for up to 50% of your adjusted gross income. If the total gifts exceed this limit, the excess may be carried forward for tax purposes for up to five years.

Example:
As you always planned to do at some point in time, you donate a gift directly to BSA, and write a check for $10,000 to the Society. Let's assume you fall in the 28 percent federal income tax bracket. By itemizing your deductions, you are eligible to take a $10,000 charitable income tax deduction that saves you an additional $2,800 ($10,000 x 28 percent = $2,800) of federal income tax for the tax year you made the gift. If your state allows you to deduct charitable gifts, you can also save on your state income taxes. Assuming a 6 percent state income tax rate, this results in an additional savings of $600 ($10,000 x 6 percent = $600) for you, the second benefit.

In this hypothetical example, by making a cash donation, you provide a $10,000 gift that generates a total tax savings of $3,400. A direct contribution of $10,000 in stock would have generated an income tax saving of $5,080. And if you were to sell the securities first and then donate what's left after paying taxes, you would have only been able to donate $8,320 ($10,000 less $1,200 + $480), which would generate income tax savings of $2,829 ($2,330 + $499).