Gifts of long-term, highly appreciated securities are the most common type of outright property gift. Donors typically give individual stocks, but bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly, and these gifts let you do more with your gift because of the very attractive tax benefits.
A charitable gift of appreciated securities held long term is not considered a sale and does not generate any capital gains tax, no matter the amount of the gain. To encourage gifts of appreciated property, Congress provides a valuable tax incentive—a charitable income tax deduction for the full fair market value of the securities (including the gain) for itemizers.
For example, if you give shares of stock worth $10,000, you can deduct the full amount on your income tax return (subject to certain income limitations) even if you bought the stock for $1,000. In addition, when we sell the stock, we keep every penny of the proceeds since we are a tax-exempt organization.
Note: Be sure to transfer the stock directly to us. Do not sell the stock, or you will lose this important tax advantage.
Contact us for more information about gifts of securities.
Making a planned gift—whether by including a bequest to the Museum in your will or by naming CHM as the beneficiary of a charitable remainder trust, life insurance policy, or retirement fund—provides essential support for the Museum’s future. Planned gifts can offer significant tax advantages and in some cases generate lifetime income for you or your chosen beneficiary.
Learn more about Estate and Gift Planning at CHM.
For a deeper look into various estate gift topics, explore our Planned Giving Resources Library.
For more information on how these gifts might work for you, contact us to learn more about Estate and Gift Planning.