Gifts of appreciated securities include stocks, bonds, mutual funds, and other assets. Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. The reason is that gifts of such property provide a double benefit — a charitable deduction, in most cases, for the full fair-market value of the property — plus avoidance of any potential capital-gains tax.
The chart below illustrates the additional tax savings from a gift of appreciated assets.
| Cash | Appreciated Property | |
|---|---|---|
| Fair-Market Value | $10,000 | $10,000 |
| Cost Basis | $10,000 | $4,000 |
| Capital Gain | 0 | $6,000 |
| Capital-Gain Tax (15%) | 0 | $900 |
| Charitable Deduction | $10,000 | $10,000 |
| Actual Tax Savings (24%) | $2,400 | $2,400 |
| Total Tax Savings | $2,400 | $3,300 |
Ready to make a gift of appreciated securities now? Submit your information today.
