Gifts of Appreciated Securities

Diagram Description

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.

		Cash	Appreciated Property
A.	Fair-Market Value	$10,000	$10,000
B.	Cost Basis	10,000	4,000
C.	Capital Gain	0	6,000
D.	Capital-Gain Tax (15%)	0	900
E.	Charitable Deduction	10,000	10,000
F.	Actual Tax Savings* (24%)	2,400	2,400
G.	Total Tax Savings (D+F)	2,400	3,300

*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.

Gifts of securities can be a strategically effective way to support Bucknell. Download and print or share the Stock Transfer Information form with your personal broker. To avoid delays in processing and crediting your gift, please provide the following information to Gift Processing & Data Management as soon as possible at gifts@bucknell.edu or 570-577-3277.