A Gift of Stock
Appreciated stock offers powerful tax benefits as an outright gift or as funding for a life income gift.
You may find that giving appreciated stock (held for more than one year) lets you make the biggest impact for the lowest cost. Consider the double tax benefit:
- You qualify for an immediate income tax charitable deduction for the full value of the stock if you itemize.
- You owe no capital gains tax on the appreciation.
Note that your deduction for long-term appreciated stock is 30% of your adjusted gross income. Any excess deduction can be carried over for up to five years.
Publicly traded stocks are the most commonly donated appreciated securities, but you could also give bonds, mutual fund shares, or closely held stock.
Selecting the best stock to give
The best choice depends on your portfolio, investment goals, and tax situation.
A gift of publicly-traded securities could be right for you if:
- You own publicly-traded securities that you have owned for at least one year (since that will allow you to deduct the full fair market value).
- Some of these securities have increased in value since you bought them (since that will provide the strongest tax benefits).
- Some of these securities may provide you with little or no income.
- Some of these securities lowered or cut their dividends.
- It could help you reposition your investments and rebalance your portfolio.
OPTION 2—funding a life-income gift with appreciated stock
Another option is to use appreciated stock to fund a life-income gift, such as a charitable gift annuity or a charitable remainder trust. Benefits include:
- You qualify for an income tax deduction (if you itemize) in the year of the gift.
- You create an income stream to supplement other sources of retirement income—income that is likely to be higher than any dividends you might be receiving from the stock.
- You may be able to reduce or spread out the payment of capital gains tax on the appreciation.
Evaluate the fit.
Appreciated stock may be a particularly good option to consider if you:
- Have stock you want to sell, but you don’t want to pay tax on the significant appreciation
- Want to rebalance your portfolio
- Want to employ one of the most powerful gifting options with double tax benefits
See how it works.
For the past few years, Jennifer has given us a check for $10,000. This year, she realizes that the growth of some of her stocks has caused her investment portfolio to become too heavily weighted in equities. She decides to give us stock worth $10,000 that she purchased years ago for $1,000. If Jennifer itemizes, she can take a deduction for the full $10,000, even though $9,000 of it has never been taxed. In her 37% tax bracket, the tax savings are substantial.
Arranging a transfer of publicly-traded securities
You transfer shares of one or more publicly-traded securities, such as stocks, bonds, and mutual funds to InterVarsity. (Do not liquidate them before the transfer. Call us for help.)
- Click here for instructions
Follow the instructions below to arrange your transfer. Call or write if you have questions or need help.
1. Your broker will need the following information:
- InterVarsity's broker: Charles Schwab & Company
- InterVarsity's DTC Number: 0164, Code 40
- InterVarsity's Account Name: InterVarsity Christian Fellowship
- InterVarsity's Account Number: 4770-6385
- InterVarsity's Federal Tax ID number: 36-2171714
- Name of stock to be transferred
- Number of shares to be transferred
2. Please complete and submit the Stock Transfer Form, or send the following information via email, fax or letter (contact info below) to Beth Steensrud. Without this information, the transfer may show up anonymously without any information.
- Your complete name, address, phone, and email
- Name and contact information of your brokerage firm
- Full name of stock being transferred (not just stock code)
- Number of shares being transferred
- Anticipated date of transfer
- Information on how your donation should be designated/distributed
Donor Services
InterVarsity Christian Fellowship/USA
P.O. Box 7895 Madison, WI 53707-7895
donorservices@intervarsity.org
Toll Free: 1-866-734-4823
Fax #: 608-274-7882
Consider your timing.
If you want to qualify for a charitable deduction this year, you should initiate the stock transfer by Monday, December 23, 2024.
How can we serve you?
We can provide you and your advisors with the information you need to choose a gift with maximum benefits, including an illustration that will clearly represent the anticipated financial and tax benefits of your hypothetical gift.