Gifts of Appreciated Securities

Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. Reason: Gifts of such property provide a double benefit—a charitable deduction, in most cases, for the full fair-market value of the property—plus avoidance of any potential capital-gain tax.

The chart below illustrates the additional tax savings from a gift of appreciated assets.

*The exact amount that can be claimed as a charitable deduction depends on two factors: the total amount of charitable gifts a donor makes in a given tax year (including the deduction described here) and the donor’s adjusted gross income.

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