Gifts of Appreciated Securities: The Details
Did you know giving stock can be more beneficial than giving cash?
Is this gift right for you?
A gift of appreciated securities may be for you if…
A $5,000 cash gift and a gift of $5,000 in appreciated securities both generate the same charitable deduction.
But if you use publicly-traded stocks, bonds or mutual fund shares that you have held for a year or longer to make your gift, you will receive an additional tax benefit: the IRS allows you to make your transfer to without recognizing capital gains on the appreciation. You can thus leverage a larger donation than you could make with cash — and receive a larger tax benefit — by "buying low and giving high."
Your gift of stock is valued, for tax purposes, at the mean of the high and low on the date of transfer. Mutual funds are valued at the "net asset value".
If you and your advisors are transferring assets at the end of the year, it is especially important to note the following.
Important Tip: Don't sell the stock first. Even though you may give us the proceeds as a gift, the IRS will impose capital gains tax on your sale, wiping out the benefits of this arrangement.
The professionals at our Department of National Planned Giving, Legacy and Endowments will be happy to discuss your interests, concerns and financial options, and work personally with you and/or your legal and financial advisors to create a plan that meets your needs and supports the Anti-Defamation League Foundation.
For more information, please contact:
Director of National Planned Giving, Legacy and Endowments
Anti-Defamation League Foundation (ADLF)
605 Third Avenue
New York, NY 10158
This information is provided for educational purposes. The Anti-Defamation League Foundation and ADL are not financial, legal or tax advisors. Please contact your advisors regarding your financial, legal or tax needs.