Appreciated Stocks and Securities Transfer

As you consider your charitable giving strategy, be sure to explore the tax benefits of donating appreciated stock. The following is an example of how a donation of this kind can be advantageous to the donor.

Donating Stock to DMARC
Download a form to complete and send in to DMARC offices.

Questions? Ready to make a gift?

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To learn more about donating appreciated stock, please view the following article: Leveraging Appreciated Positions to Reduce Taxes and Increase Your Charitable Giving.

Example of a Gift of Long-Term Appreciated Stock
Mr. Jones is a donor in the 31% tax bracket who decides to make a gift of stock worth $100,000 that he originally purchased for $40,000 a few years ago. His tax savings will be as follows:

$100,000 (fair market value)

31% (tax rate)

$31,000 (tax savings)

If Mr. Jones instead sold the stock and donated the proceeds, his tax savings would be far more limited:

$100,000 (fair market value)

$40,000 (less the basis)

$60,000 (gain)

15% (tax rate on long-term gain)

$9,000 (tax on gain)

 

$100,000 (cash gift)

31% (tax rate)

$31,000 (tax savings)

$9,000 (less tax on gain)

$22,000 (net tax savings)

 

Note: in all cases it is recommended that donors consult with their lawyer and financial planner for counsel and advice.