Appreciated securities can make an excellent gift. A gift of appreciated securities (stocks, bonds, mutual funds, ETFs, etc.) held for more the one year generally provides significant benefits to you as a contributors, such as:
- Entitling you to a charitable income tax deduction for the fair market value of the gifted securities as of the date of gift.
- Eliminating capital gains tax that would ordinarily become due if you had sold the appreciated securities on the open market and donated the proceeds from the sale to charity.
- Claiming your charitable deduction against up to 30% of your adjusted gross income. Any unused deductions can be carried forward over the next five years.
- Providing a way to help you to achieve your long-term financial objective of reducing your income and estate taxes.