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 Bill and Susan had 600 shares of ABC Corporation that they purchased at $30 a share some years ago. The current value in today's market is $72 a share. 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 ($72 minus $30 = $42 capital gain per share. 600 shares X $42.00 = $25,200 in capital gains).

Bill and Susan 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 600 shares to charity, they would not incur any capital gains and would be able to deduct the current value (600 shares X $72 = $43,200) on their tax return as a charitable gift. By donating the stock, the charity receives a larger gift than it would receive if Bill and Susan first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, Bill and Susan 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.

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Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Gift Planning section has been developed for Good Samaritan Hospital Foundation by Future Focus. Please report any problems to section webmaster. Revised: March 16, 2010 11:09.