If you are considering a charitable contribution to the ERC this year, it is your best interest to seek out the most effective manner in which your money can work for you. Gifting appreciated stock is one of the most effective means of tax savings available - courtesy of today's U.S. tax laws.

What are the benefits?

• The satisfaction of knowing your money is supporting ERC's acclaimed programs.

• You'll avoid paying capital gains taxes on the stock sale.

• You will be eligible to receive an income tax charitable deduction for the full fair market value of the stock at the time of the gift.

To qualify for these special tax advantages, the security must have been held for at least one year. A gift of stock in certificate form should be postmarked by December 31, or ask your financial consultant to arrange it for you. Your gift of appreciated stock is fully deductible up to 30% of your gross income.

Here are three scenarios of the tax savings to you of donating securities versus a cash gift,
assuming you wish to donate shares of stock worth $10,000 that you purchased for $2000 several years ago:

• If you sold the securities and donated cash, after capital gains tax and income tax, you'd have a net tax savings of $2300.

• If you donated $10,000 in cash to the ERC instead, you'd net a tax savings of $3500.

• If you donated the securities themselves to the ERC, you'd realize a tax savings of $4700. (What's not to like about that?)

In each case, the ERC would receive the full $10,000, but the tax advantage of the donation to you varies markedly, depending on how you handle it.  Please check this out with your financial advisor.  It's a win/win situation!