The Matthew Jordan Brown Foundation

Gifts of Appreciated Securities to The Matthew Jordan Brown Foundation
are a Tax-Wise Way to Give

Historic Stock Growth --

The Good News and the Bad

Recent years have seen unprecedented growth in the stock market and, therefore, many stock holdings have significant levels of unrealized gain. Thatís the good news. The bad news is that if these stocks were sold today, 20% or more of the gain would be lost to taxation. There has never been a better time to strategically consider the effectiveness of making a gift of these assets to The Matthew Jordan Brown Foundation.

Making a Gift of Appreciated Assets

In making outright gifts, it is generally considered to be wise financial stewardship to do so in the form of appreciated securities. Unlike cash gifts that have already incurred taxation, direct gifts of appreciated assets avoid a capital gains tax entirely. Additionally, the donor enjoys the benefit of an income tax deduction for charitable donation for the full fair market value of the asset gift. This effectively makes the gift less costly to make. The chart below offers a side-by-side comparison clearly illustrating the advantages of making a direct gift of an appreciated asset to The Matthew Jordan Brown Foundation.

NOTE: This table is an example ONLY, assuming an 18-month holding
period and a 6% state income tax rate. State tax rates vary.

Cash Proceeds
from Stock Sold

Direct Gift
of Asset

Value of Asset:

$10,000

Original Purchase Price:

($2,500)

Amount of Appreciation:

$7,500

Capital Gains Tax:

($1,950)

($0)

Proceeds to Qualified 501(c)(3) Beneficiary:

$8,050

$10,000

Income Tax Savings:
(45% Fed. and State*)

$3,622

$4,500

Capital Gains Tax Avoided:
(26% Fed and State*)

$1,950

Total Tax Savings:

$3,622

$6,450

Net "Cost" of Making Gift ($10,000 Tax Savings):

$6,378

$3,622

For more information, call
Kendall O. Clay, Esq. at 540-639-9623
or Robert B. Amidon, Esq. at 818-558-4444
or Thomas W. Current, Esq. at 804-528-8877.

Or write

The Matthew Jordan Brown Foundation:

P.O. Box 499 Montvale, VA 24122

The Matthew Jordan Brown Foundation operates under the auspices of the Liberty University Foundation, which is a non-profit 501(c)(3) organization, to which corporate and individual contributions are deductible for income tax purposes.

Site Created and Maintained

The MJB Foundation is structured through the Liberty University Foundation as a not-for-profit 501(c)(3) organization
to which charitable contributions are deductible for income tax purposes.