Appreciated Stocks and Securities Transfer
As you consider your charitable giving strategy, be sure to explore the tax benefits of donating appreciated stock. The following is an example of how a donation of this kind can be advantageous to the donor.
To learn more about donating appreciated stock, please view the following article: Leveraging Appreciated Positions to Reduce Taxes and Increase Your Charitable Giving.
Example of a Gift of Long-Term Appreciated Stock
Mr. Jones is a donor in the 31% tax bracket who decides to make a gift of stock worth $100,000 that he originally purchased for $40,000 a few years ago. His tax savings will be as follows:
| $100,000 (fair market value) |
| 31% (tax rate) |
| $31,000 (tax savings) |
If Mr. Jones instead sold the stock and donated the proceeds, his tax savings would be far more limited:
| $100,000 (fair market value) |
| $40,000 (less the basis) |
| $60,000 (gain) |
| 15% (tax rate on long-term gain) |
| $9,000 (tax on gain) |
| $100,000 (cash gift) |
| 31% (tax rate) |
| $31,000 (tax savings) |
| $9,000 (less tax on gain) |
| $22,000 (net tax savings) |
Donating Stock to DMARC
Download a form to complete and send in to DMARC offices.
Note: in all cases it is recommended that donors consult with their lawyer and financial planner for counsel and advice.