Gifts of long term, highly appreciated securities are the most common type of outright property gift.
Typically, individual stocks are given; however, bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly, and these gifts let you do more with your gift because of the very attractive tax benefits.
For appreciated property held long term, the full fair market value of securities given to charity is generally deductible for itemizers. For example, if you give shares of stock that are now worth $10,000, you can deduct the full amount of the gift on your income tax return (subject to certain income limitations), even though you may have bought the stock for $1,000.
A charitable gift of securities held long term is not considered a sale of the securities and does not generate any capital gains tax, no matter the amount of the gain. This is a valuable tax incentive provided by Congress to encourage gifts of appreciated property. The result: a charitable deduction is allowed for capital gains that would have been taxed. And, if we sell the securities, we keep every penny of the proceeds since we are tax exempt. To make your gift, transfer the stock to us—do not sell the stock.
For more information, please refer to our Gifts of Stock brochure.
Want to get started?
To make a gift of stock, bonds or mutual funds, please contact Anne Kathryn Zamkovsky, Director of Planned Giving, at (713) 798-8262 or Tiki Boyd at (713) 798-4570 to obtain the appropriate instructions.
Note: Gifts of securities typically take several days to complete. Please consult your CPA or tax preparer to determine the tax implications of your gift.