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 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.
Youth Villages is a private nonprofit organization
dedicated to helping emotionally and behaviorally
troubled children and their families live successfully.
We help more than 23,000 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.