What to Give

Compare the Tax Advantages of Giving Securities

If you own stocks, bonds or mutual funds that are worth more than you paid for them, you may want to consider using them to make your year-end gifts.

  • You bypass capital gains tax that could be due if you sold the asset.
  • If you itemize, you are also entitled to a charitable income tax deduction based on the asset’s current value, including any "paper profit."
  • You can conserve your cash for other uses.
  • You must have owned the property longer than one year.

What Will My Gift Cost?

By filling in the blanks below, our interactive calculator will allow you to see your tax savings as well as the cost of your gift of appreciated securities vs. cash.

An Example of a Gift of Appreciated Securities
  1. Jordan is in the 35% tax bracket and a 15% capital gains tax bracket and would like to make a $10,000 charitable gift.
  2. Jordan gives appreciated securities with a cost basis of $2,000 instead of cash. The charity sells the securities, pays no capital gains tax and receives $10,000, less expenses, from the sale.
  3. Jordan receives a charitable income tax deduction in the amount of $10,000 and bypasses capital gains tax on the sale of the securities. The cost of the gift has been reduced to $5,300 ($10,000 - $3,500 - $1,200), a savings of $1,200 over a similar gift of cash.

View Full Text Version

NOTE: This calculation is provided for educational purposes only. The type of assets transferred, the actual date of the gift and other factors may have a material effect on the amount or use of your deduction. You are advised to seek the advice of your tax advisors before implementing a gift of this type.