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gifts of appreciated securities
(or other assets)

The gift of an appreciated asset, often common stock or mutual fund shares, is a valuable way to make a contribution to a charitable organization and receive tax benefits based on the value of the asset(s).

Suppose Richard and Terri had 300 shares of XYZ Corporation that they purchased at $15 a share some years ago. The current value in today's market is $36 a share.
Jean White and David Chandler in Heartbreak House (photo courtesy of kevinberne.com)
Jean White and David Chandler in Heartbreak House (photo courtesy of kevinberne.com)
If they sold the stock in the market, they would have a taxable, long-term capital gain on the difference between their cost and what they would receive from the sale ($36 minus $15 = $21 capital gain per share. 300 shares X $21.00 = $6,300 in capital gains).

Richard and Terri could sell the stock, pay the tax on the capital gain, and either keep or donate the proceeds. If, however, instead of selling the stock, they gave the 300 shares to charity, they would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) on their tax return as a charitable gift. By donating the stock, the charity receives a larger gift than it would receive if Richard and Terri first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, Richard and Terri receive a greater tax deduction by giving the stock directly to the charity and avoiding the capital gain tax.

While the gift of appreciated assets often is stock, other marketable assets (called tangible personal property) can be utilized as gifts with the possibility of tax benefits. These are assets such as real estate, antiques, coin or stamp collections, and art. However, these are reviewed on a case-by-case basis. For more information about gifts of any appreciated assets, please contact us so we can respond to your specific needs.

To make a gift of stock, download our Stock Instruction Form (PDF), complete and fax to Berkeley Rep’s Development Office at 510.647.2910. Transfers of stock may be made directly to our broker at Morgan Stanley Smith Barney, however to accurately acknowledge your gift, the Stock Instruction Form must be submitted to Berkeley Rep at the time of transfer.

Return to Bequests and Retirement Assets.

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