Gifts of long-term, highly appreciated securities (stocks, bonds, or mutual fund shares held for longer than one year) are very common because they are easy to make and let you have a bigger impact thanks to double tax advantages:
- A charitable income tax deduction for the full fair market value of the securities (including the gain) for itemizers, subject to limitations
- No capital gains tax, no matter the amount of the gain
For example, if you give shares of stock worth $10,000, you can deduct the full amount on your income tax return (subject to limitations) and pay no capital gains tax, even if you bought the stock for $1,000. In addition, when we sell the stock, we keep every penny of the proceeds since we are a tax-exempt organization.
Note: Be sure to transfer the stock directly to us. Do not sell the stock, or you will lose this important tax advantage.
Contact us for more information about gifts of securities.