Gifts of Appreciated Assets

Goal: Avoid capital gains tax on securities sale
Benefit: No capital gains tax and charitable deduction based on fair market value

The gift of an appreciated asset, often common stock or mutual fund shares, is a valuable way to make a contribution to a charity and receive tax benefits based on the value of the asset(s). For example, suppose Richard and Terri in this example had 300 shares of XYZ Corporation that they had purchased at $15.00 a share some years ago. The current value in today's market is $36 a share. AthleticsIf they sold the stock in the market, they would have a taxable, long-term capital gains on the difference between their cost and what they would receive from the sale ($36 minus $15 = $21 capital gains per share. 300 shares X $21.00 = $6,300 in capital gains).

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

Return to Bequests, to the Legacy Giving home page, or to Legacy Giving Options.

For more information or a confidential discussion of your charitable options, please email or call the Senior Director of Development, Jean Maginnis, at 207-893-7899.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice, either in whole or in part. 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 Legacy Giving section has been developed for Saint Joseph's College by Future Focus. Please report any problems to section webmaster.