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Using Stock as a Charitable Gift

Despite any market uncertainty of late, many of your investments are likely still worth more today than what you originally paid for them. And if you sell, you would pay capital gains taxes at a maximum rate of 15 percent. But by using appreciated securities you’ve owned for more than one year as a charitable gift, you will receive two tax benefits:

    1. You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their lower original cost.
    2. You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you were to sell the securities.
And now is a particularly appealing time to give because if you make your gift by the end of the year, your tax benefits could be effective on this year’s tax return, if you itemize, no matter what changes in the tax law might be.

Case Study
Cash vs. Stock: Which Gets More Bang for Your Buck?
Throughout her working years, Kim saved and invested diligently to prepare for retirement. Now that she is 65, she is ready to diversify her portfolio and wants to use $100,000 in stock (which she originally purchased for $10,000, resulting in a $90,000 gain) to fund a gift to NTFB. Take a look at the chart below to see how Kim will benefit from giving her stock directly to us as opposed to selling it and donating the proceeds.

Let Us Help
To learn more, feel free to give us a call, at no obligation. Together with your advisor, we can help you fulfill your charitable goals while avoiding worries over tax consequences or market conditions.

How to Make a Gift of Stock
If you don’t have possession of the physical securities:
  • Hand-deliver them to us
  • Mail us the stocks and stock power separately
If you don’t have possession of the physical securities:
  • Instruct your broker to electronically transfer your intended shares
  • Ask your broker to notify us once the transfer is complete
For stock transfer instructions, please contact Matt Hackler, Director of Individual Giving, at 214-572-4105 or at

Copyright © The Stelter Company, All rights reserved.

The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.


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