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 St. Louis University High 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."
Your gift of securities is valued as of the day the securities reach our account if your broker transfers them electronically, or the postmark date if you mail them. Your gift value is the average of the high and the low prices for the securities on that date (for mutual fund shares, it is the net asset value).
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.
How It Works
You transfer securities to St. Louis University High
SLUH sells your securities and uses the proceeds for its programs.
Benefits
- You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
- You pay no capital gains tax on the securities you donate.
- You can direct your gift to a specific fund or purpose.
- You can have the satisfaction of making a significant gift now or funding a life-income gift that benefits SLUH later.
This gift is for you if...
- You're holding stocks, bonds, or mutual fund shares that have risen in value;
- You want to maximize your deduction but not affect your cash flow;
- You want to make an outright gift to us, or a gift that will first return lifetime payments to you.
To learn more about gifts of appreciated securities, E-mail us, complete the Information Request form, or call us at 314.531.0330 so that we can assist you.
© 2006, VirtualGiving, Inc.
