One of the best strategies for reaping the benefits of highly appreciated securities is available through charitable planning.
Many donors discover they generate better benefits if they give long-term appreciated stock rather than a cash gift. These benefits may include both greater tax savings and increased cash flow. You receive a double benefit by donating appreciated stock. You obtain a charitable income tax deduction, which reduces your federal income-tax liability, and you avoid paying capital-gain tax on the paper gain. Donors are able to obtain a higher income-tax deduction by donating stock owned for more than 12 months because they can deduct the full fair-market value of the stock at the time of the gift, regardless of how much they paid for it. While the charitable deduction is limited to 30 percent of your adjusted gross income, the unused portion can generally be carried forward and deducted for up to five additional years.
Using several income-producing arrangements, such as charitable gift annuities or charitable remainder trusts, you can transfer the securities now and receive a stream of payments for yourself and/or another beneficiary for life or for a term of years. Amount of payments is determined by the plan you choose. If you have depreciated stock, it is better to sell the investment and use the cash proceeds for your gift. By selling the stock, you recognize any loss you incur on the sale to offset other capital gain and possibly ordinary income.
HOW TO MAKE YOUR GIFT
If you have a paper certificate, deliver it to us with a signed Irrevocable Stock or Bond Power and a Letter of Intent. Please do not sign the back of the certificate. We suggest using certified mail to send the certificate to us. In a separate envelope, mail the stock power and letter of intent by certified mail. The date of the gift is the date of the latest postmark. Instructions for Stocks or Bonds Held in Certificate.
Stocks in a Brokerage Account
Please ask your broker to deliver your stock to our account: M&I Bank, DTC #992 Account 71-A308-AK-2 Marianist Province of the United States. The date of the gift is the date that the stock is received in the Marianists’ account.
Please call or send an e-mail to notify us of your pending gift so that we may promptly thank you and provide your tax receipt. Please allow plenty of time (especially at year-end), so your tax deduction is available in the calendar year you prefer.