Gifts of Appreciated Securities Q&A
Should I sell my stock first?
No. If you sell your stock before donating the proceeds to the Foundation, the IRS will impose capital gains tax on the sale, wiping out the benefits of this gift arrangement.
By donating the shares to the Foundation, you receive a tax deduction on the full fair market value of your stock, while avoiding the capital gains tax that would otherwise arise from the sale.
What about contributing depreciated stock?
In this case, the opposite applies. If you had stock worth $25,000, for example, and it’s now worth $15,000, your charitable deduction will be limited to $15,000.
Sell your depreciated stock first, claim the resulting capital loss on your income tax return, then contribute the proceeds of the sale as a deductible cash gift to us for your charitable fund.
How do I contribute gifts of securities?
Contributing securities is relatively simple, whether it’s shares held in your brokerage account or a certificate of shares of stock. In either case, please allow sufficient time for completing such gift transactions.
For instructions on how to make a gift of securities to The Dayton Foundation, click here.
With any gift arrangement, we recommend that you consult with your financial planner or attorney first. All gifts are subject to approval by the Foundation’s Gift Acceptance Committee and the Governing Board.
For more information or to discuss a gift plan that works for your individual needs, contact a member of our Development Department at (937) 222-0410.
IN HIS WORDS
“ Gifts of all sizes are honored at The Dayton Foundation. No one should feel barriers to participating in our region’s future.”
– Burnell R. Roberts, donor and former chair of The Dayton Foundation’s Governing Board