The gift of an 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 you hold 300 shares of XYZ Corporation that you purchased at $15.00 a share some years ago. The current value in today’s market is $36 a share. If you 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).
You could sell the stock, pay the tax on the capital gain, and either keep or donate, instead of selling the stock, you gave the 300 shares to their charity, you 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 receive it would receive if you first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, you receive a greater tax deduction by giving the stock directly to the charity and avoid the capital gain tax.
While the gift of appreciated assets often in 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 are reviewed on a case-by-case basis.
For more information about gifts of appreciated assets, please contact us so we can respond to your specific needs.
Your contact at Dani’s Foundation is:
Martha Simmons
Executive Director, 1600 Broadway, Suite 2400, Denver, CO 80202
PHONE: 303.601.1881
FAX: 970.532.1077
martha@danisfoundation.org
PLEASE NOTE:
Individual financial circumstance will vary. The information on this site does not constitute legal or tax advice. As with all tax and estate planning, please consult your attorney or estate specialist.
