Gifts of Appreciated Securities

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.