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More About Gifts of Appreciated Investment Securities/Stock Gifts  

The contents below provide more information on gifts of appreciated investment securities and stock gifts. Please take the time to learn about this giving option, and feel free to contact us for more information.

 

Gifts of Appreciated Investment Securities / Stock Gifts 

Goal: Avoid capital gains tax on securities sale

Benefit: The donor is not taxed for capital gains on the sale and may take a charitable deduction based on fair market value even if the value of the securities has appreciated.

Giving an appreciated asset, such as common securities or mutual fund shares, is a valuable way to make a contribution to a non-profit organization and receive tax benefits based on the value of the gifted asset at the time of the gift.

 

Example Case

For example, Tom and Rebecca have 250 shares of Acme Inc. that they previously purchased at $10 per share. In today’s market, the current value is $28 per share. If they sell the securities, they would have a taxable, long-term capital gain on the difference between their cost and what they would receive from the sale:

$28 minus $10 = $18 capital gain per share —> 250 Shares x $18 = $4,500 subject to capital gains taxes.

Tom and Rebecca could sell the securities, pay tax on their capital gain, and either keep or donate the proceeds. However, if instead of selling the securities, they gave their 250 of them to a charity, they would not incur any capital gains tax and would be able to deduct the current value (250 shares x $28 = $7,000) on their tax return as a charitable gift. By donating the securities, the non-profit organization receives a larger gift than it would if Tom and Rebecca first sold the securities and then donated the proceeds after deducting the capital gains tax. Tom and Rebecca also receive a greater tax deduction by giving the securities directly to the non-profit organization and avoiding the capital gains tax.

 

Contact Information for Further Details 

If you would like to donate securities to the Starkloff Disability Institute, please see our transfer instructions below:

To ensure that your gift is directed to the Starkloff Disability Institute and that you receive appropriate documentation for your gift for the IRS, please contact:

Lori Becker, Director of Development

(314) 588-7090 / lbecker@starkloff.org

Please provide the Starkloff Disability institute the following:

  • Anticipated date the shares will be transferred
  • Securities name(s)
  • Number of shares

Information for Transactions:

RBC Capital Markets

Participant DTC Number: 0235

Account Number: 796-18263

For further information on how to transfer securities, please call Millennium Financial Group at (314) 835-0895.

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