Gifts of Appreciated Securities
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 to make your gift, you will receive an additional tax benefit: the IRS allows you to make your transfer to SDRI 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 deduction — by "buying low and giving high."
The charitable deduction for your gift of securities is the average of the high and low prices offered for the stock on the day of the gift.* The gift date is the day your broker transfers the shares to our account, or the postmark date if you mail the shares yourself.
Important Tip: Don't sell the stock first. Even though you give us the proceeds as a gift, the IRS will impose capital gains tax on your sale, wiping out the benefits of this arrangement.
* For mutual fund shares, the deduction is the net asset value on the day of the gift.
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To learn more about gifts of appreciated securities, Email us, complete the Information Request Form, or call us at (805) 682-7638 so that we can assist you.
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