Gifts
of Stock or Securities
One of the most advantageous ways in which to make a charitable contribution is through the gifting of shares of appreciated stock.
Gifts of stock or securities may be eligible for a federal charitable income tax deduction at their current market value. Consequently, donors may avoid the otherwise applicable capital gains tax, by donating shares originally purchased at a lower price.
Let’s consider an example. 100 shares of XYZ, Inc., originally purchased for $10 per share, but now worth $25 per share, would be eligible for a charitable deduction of $2,500. The donor’s cost to make this contribution is the stock’s initial $1,000 purchase price. The additional $1,500 of capital gain is avoided.
In summary, gifting appreciated assets to a qualifying charity can:
- Provide valuable capital for the charity
- Generate a charitable deduction for the donor
- Avoid capital gains tax that would otherwise be due, if those assets
were sold in the donor's name
- Use "discounted" dollars, as the appreciated gift has a "cost basis" below the current market value.
This is a true “Win – Win – Win!”
Please click on this link to download the necessary form and instructions to make a gift of stock.
As always, we strongly recommend that you consult your personal tax and financial advisors prior to making any tax or investment decisions.
Click here to download our "Stock Transfer Form" to print.
To learn more about the potential advantages of charitable estate planning, and special donor recognition available through The Knight Society, please contact Executive Director Chris Rollins, CFRE, at (609) 978-3081 or click here to contact us.
