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. 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
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 Vice President and Chief Advancement Officer, Joanne Bean, at 207-893-7891.
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
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