Gifts of Securities
Why pay taxes if you don't have to? A charitable gift of appreciated stock avoids the long-term capital gains tax, allowing the full value of the asset to be put to use.
Harvest the Gains on Your Investments -- Benefits of Donating Securities to FAIS:
- Donors avoid paying capital gains taxes on donations of appreciated securities held over one year;
- Donors are allowed to write off the fair market value of the securities donation on their tax return;
- FAIS receives a donation at the higher fair market value of the securities as opposed to the lower after-tax cash proceeds
- Learn more about how to make a securities donation or contact Paul Mallon at firstname.lastname@example.org.
More Tips for Donating Securities to FAIS:
- Examples of securities are stocks, shares of mutual funds, bonds or shares of ETFs.
- To avoid paying taxes on the capital gains, donors must own the securities for at least one year prior to the securities being transferred to FAIS.
- As donated securities will be immediately sold, donors do not need to concern themselves with which securities are more appropriate for an educational organization like FAIS.
- Some gifts of stock may also qualify for matching funds. Check with your employer’s matching gift program for confirmation.
- Do not “sell” the securities -- they must be “transferred” directly to FAIS.
- If the gift is in the form of a stock certificate registered in the donor’s name, ownership of the appropriate number of shares must be transferred to FAIS and new certificate/s issued. Please contact email@example.com for further instructions.
- A letter acknowledging your tax deductible gift will be mailed to you from FAIS. Simply present that letter to your tax preparer in order to take advantage of your tax deductible gift.
- The stock transfer process may take up to a few weeks to complete. In order to complete the process in time to write off the donation on this year’s tax return, please consider making your donation by the first week in December.
The information on this website is not intended as accounting or legal advice. Please consult an accounting or legal professional to discuss your personal situation. References to income tax apply to federal taxes only. Federal estate tax, state income/estate taxes or state law may impact your results.