Gifts of Stock and Appreciated Assets

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How It Works

You transfer appreciated stocks, bonds, or mutual fund shares you have owned for more than one year to witf. witf sells your securities and uses the proceeds for its programs.

Benefits

  • You receive an immediate income tax deduction for the fair market value of the securities on the date of transfer.
  • You pay no capital gains tax on the transfer when the stock is sold.
  • In some circumstances, giving appreciated stock can be more beneficial than giving cash.

Gifts of Stock and Appreciated Assets: FAQs

How do I arrange for a gift of my stock?
It is important that you contact witf so that we can assist you with transfer instructions. If you own securities in a brokerage account, we can help you set up an electronic transfer of the shares to our brokerage account. If you possess actual stock certificates, we can tell you how to sign the certificates over to us and fill out a stock power form.

What are the tax advantages of a gift of stock?
Assuming you are giving long-term (owned for 12 months or more) appreciated securities, you will receive a charitable income tax deduction equal to the fair market value of the shares. For common stock this is typically the mean value on the date that we take control of the shares you give. You will pay no capital gains tax. Gifts of stocks are deductible up to 30% of your adjusted gross income the year you make your gift. Any excess amount can be rolled over into the next tax year, for up to five additional tax years if needed.

Will you sell the shares I give you?
It is generally witf's policy to liquidate any donated stock shares very soon after receiving them, so that we can use the cash proceeds for the purpose you designate.

Can I give closely held stock that I own?
In many cases yes, and considerable tax benefits can result. However, giving closely held stock is more complicated than giving publicly traded securities and may be subject to certain transfer restrictions. We stand ready to assist you with your gift intention. One prerequisite to our acceptance of a gift of closely held stock is that the business or the shares have had a recent qualified appraisal. Please contact witf when considering this option so that we can walk you through the process.

Contact witf about Planned Giving

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