Resilience Fund: Gifts of Stock

Still a Smart Way to Give

Appreciated stock can be the ideal choice for donors who want to make an impact with their charitable giving at a substantially reduced cost. The secret is in the double tax benefit.

Suppose you decide to give us 100 shares of stock with a current fair market value of $5,000. You bought the stock for only $1,000 more than a year ago. Today, you can deduct the full $5,000 on this year’s income tax return. The $4,000 capital gain is not taxed, even though it has “inflated” your charitable deduction. Avoiding the capital gain makes it possible to give stock at a lower actual cost to you rather than making a cash gift.

Which Stocks Are Best to Give?

There are no definite rules for selecting stock for a charitable gift.

The best choice will depend on your portfolio and your investment goals. But here are a few general rules...

Look for a stock with the greatest amount of appreciation. Such a stock will give you more leverage for the untaxed gain.
If you try to stick to a specific ratio for your portfolio (i.e. 40% stocks, 40% muni bonds, and 20% cash), you could choose to give a certain stock so you can reposition your investments, balance your overall position, and receive valuable tax relief.
Select a stock that may have lowered or cut its dividend. All of these options require some planning, so consult your investment and tax advisors and let them know about your philanthropic goals.

Holy Family Brokerage Information

Broker: Charles Schwab
DTC #: 0164
Account #: 6908-5977
Client Name: Passionist Fathers of CT, Inc.
(AKA: Holy Family Passionist Retreat Center)
Contact: Hans Raymond

For more information, please contact:

Dawn Fleming
Director of Donor Relations and Planned Giving
203-232-0444
dfleming@holyfamilyretreat.org