Gifts of Appreciated Assets

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. If 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 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 involves stock, other marketable assets, such as land, antiques, and homes, can be utilized as potential gifts with the possibility of valuable tax benefits. However, these other assets are reviewed on a case-by-case basis. For more information about gifts of appreciated assets, please contact us so that 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 Planned Giving section has been developed for Saint Joseph's College by Future Focus. Please report any problems to webmaster. Revised: May 22, 2008 8:47.