Gifts of Appreciated Securities
How it works
- You transfer securities to a Sun Health Foundation brokerage account.
- Sun Health Foundation immediately sells your securities and uses the proceeds as the donor designated.
Benefits
- You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of the transfer, no matter what you originally paid for them.
- You pay no capital gains tax on the securities you donate.
- You can direct your gift to a specific fund or purpose.
- You can have the satisfaction of making a significant gift now or funding a life-income gift that benefits Sun Health Foundation later.
A gift of appreciated securities is for you if . . .
- You're holding stocks, bonds, or mutual fund shares that have grown in value.
- You want to maximize your deduction without incurring capital gains tax.
- You want to make an outright gift to Sun Health Foundation, or a gift that will first provide lifetime payments to you.
DON'T
Don't sell stock first and then give Sun Health Foundation the proceeds. Even though you will receive a deduction, you will pay capital gains tax on the sale, eliminating a key benefit of your gift.
Don't contribute securities that have declined in value. The fair-market value deduction rule works against you: if you bought the stock for $50,000 and it's now worth $30,000, your charitable deduction will be limited to $30,000. You won't be able to claim a capital loss by making the transfer to us, either.
INSTEAD
Sell the depreciated stock, claim the resulting tax loss as a deduction, and then make a deductible cash gift to Sun Health Foundation with the proceeds.
For questions related to Securities, please email us or call (623) 876-5330.
