GIFTS OF STOCK

If a donor owns stock, it is more often tax-wise to contribute stock than cash.

This is because gifts of appreciated securities offer a two-fold tax saving. First, the donor avoids paying any capital-gains tax on the increase in the value of the stock. Second, the donor receives an income-tax deduction for the full market value of the stock at the time of the gift. Example:

If a donor purchased securities many years back for $2,000, and those same securities are currently worth $20,000,  an outright gift of those securities would generate a charitable deduction of the full $20,000. Additionally, there is no tax on the $18,000 appreciation of the value.

To benefit from these tax advantages, the donated securities must have been held by the donor(s) for at least one year.

Gifts of appreciated securities are fully deductible up to a maximum of 3O% of the donor(s) gross income. Any excess can generally be carried forward and deducted over as many as five subsequent years.

Donors should always consult with accountants or tax advisors for the advantages (and potential drawbacks) of making a planned gift, based upon particular circumstances.