Office of Planned Giving

Gifts of Stock

Gifts of long-term appreciated securities are the most common type of outright property gift. Typically, individual stocks are given; however, highly appreciated bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly and these gifts let you do more with your gift because of the very attractive tax benefits.

For appreciated property held long term, the full fair market value of securities given to charity is generally deductible. For example, if you give shares of stock that are now worth $10,000, you can deduct the full amount of the gift on your income tax return (subject to certain income limitations), even though you may have bought the stock for less than $1,000.

A charitable gift of securities held long-term is not considered a sale of the securities and does not generate any capital gains tax. This is a valuable tax reward provided by Congress to encourage gifts of appreciated property.

Indeed, no matter how much a security has appreciated in value, a charitable gift will not make any part of your paper profit taxable. The result: a charitable deduction is allowed for profits that have never been taxed. And, if we sell the securities, we keep every penny of the proceeds since we are tax exempt.

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