Gift of Securities
Giving appreciated stocks or bonds is a superb way to show support for our programs. With certain limitations, you can deduct the full fair market value of long-term appreciated securities - that is, securities you have owned a certain amount of time (the time period varies depending on when you obtained the asset) and that have increased in value. Thus, you can give away appreciated property and usually avoid the tax on the gain.
Gifts of securities are deductible up to 30 percent of your adjusted gross income, with a five-year carry-over. Under certain circumstances, however, you can choose to qualify for the 50 percent adjusted gross income ceiling by reducing the value of your gift by the full amount of its appreciation - that is, to its cost basis (what you paid for the asset).
Example:
Ms. Curtis contributes long-term securities, which cost her $25,000 and now are worth $30,000. She is entitled to a $30,000 charitable deduction and completely avoids paying tax on the $5,000 appreciation. There are several significant benefits that can result from gifts of appreciated closely held stock. Please contact the Foundation for more information on this unique gift opportunity.