Gifts of Appreciated Securities: 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. Reason: 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-gain tax.

The chart below illustrates the additional tax savings from a gift of appreciated assets.

		Cash	Appreciated Property
A.	Fair-Market Value	10,000	10,000
B.	Cost Basis	10,000	4,000
C.	Capital Gain	0	6,000
D.	Capital-Gain Tax (15%)	0	900
E.	Charitable Deduction	10,000	10,000
F.	Actual Tax Savings (28%)	2,800	2,800
G.	Total Tax Savings (D+F)	2,800	3,700

For further information about gifting securities, please contact Denise Pilmer Taylor, investment specialist, or Jennifer L. Kidon DeKrey, controller.

Back