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Appreciated Assets

The gift of an asset, often common stock or mutual fund shares, is a valuable way to make a contribution to a charitable organization and receive tax benefits based on the value of the asset(s).

Suppose Richard and Terri had 300 shares of XYZ Corporation that they purchased at $15 a share some years ago. The current value in today's market is $36 a share.If they sold the stock in the market, they would have a taxable, long-term capital gain on the difference between their cost and what they would receive from the sale ($36 minus $15 = $21 capital gain per share. 300 shares X $21.00 = $6,300 in capital gains).

Richard and Terri could sell the stock, pay the tax on the capital gain, and either keep or donate the proceeds. If, however, instead of selling the stock, they gave the 300 shares to charity, they would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) on their tax return as a charitable gift. By donating the stock, the charity receives a larger gift than it would receive if Richard and Terri first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, Richard and Terri receive a greater tax deduction by giving the stock directly to the charity and avoiding the capital gain tax.

While the gift of appreciated assets often is stock, other marketable assets, such as land, antiques, and homes, can be utilized as potential gifts with the possibility of valuable tax benefits. However, these are reviewed on a case-by-case basis. For more information about gifts of appreciated assets, please contact us so we can respond to your specific needs.


Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for Youth Villages by Future Focus.

 

Contact Us

Please complete a short inquiry form to request more information or a personalized illustration of how a planned gift can benefit you. All consultations are held in strict confidence.

Steve Benskin
phone: (901) 251-4820
fax: (901) 251-5001
steve.benskin@youthvillages.org

Youth Villages
P.O. Box 341154
Memphis, TN 38184-1154

 


About Us
Youth Villages is a private nonprofit organization dedicated to helping emotionally and behaviorally troubled children and their families live successfully. We help more than 22,000 children and families each year from more than 20 states and Washington, D.C. Our Evidentiary Family Restoration™ approach involves intensive work with the child and family, a focus on measuring outcomes, keeping children in the community whenever safely possible, and providing accountability to families and funders. The EFR approach produces lasting success for children with success rates twice that of traditional services at one-third the cost of traditional care.
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