National Lutheran Choir – Minneapolis/St. Paul | celebrating the art and culture of sacred choral music

Making a gift of appreciated securities is simple and offers a number of important financial benefits:

• A federal income tax charitable deduction (if you file an itemized return). Many state income tax laws also allow for a charitable deduction.

• A deduction for the securities’ full fair market value if they have been held twelve months or longer.

When you make a gift of appreciated securities, you receive an income tax charitable deduction for their full fair market value and pay no capital gains tax. The after-tax cost of giving securities is less than making an equivalent gift of cash. If you wish to maintain the composition of your portfolio, use the cash you would have donated to purchase the same securities in the open market. The newly acquired shares will then carry as their cost basis the current market value.

If you hold securities that have declined in value, it is generally advisable to sell them and then donate the cash proceeds. In this way, you can establish a tax loss and claim an income tax charitable deduction for the cash gift.

If you have questions about how these tax principles apply to you, please consult your accountant or attorney.