Gift of Appreciated Stock (or other assets)

The gift of an asset, often common stock, or mutual fund shares, is a valuable way to make a contribution to a charitable organization and receive tax benefits based on the value of the asset or assets. Appreciated assets have a higher market value than their basis or tax purpose value (in most cases, their cost). Such assets would, if sold by an individual or non-charitable organization at a price higher than their basis, potentially generate a taxable capital gains (either long-term or short-term depending on the holding period).

The donor receives a charitable tax deduction based on the current market value of the gift and avoids tax on any capital gains. The California Scottish Rite Foundation sells the assets, realizes the full market value, and as a nonprofit organization, does not have to pay tax on any capital gains.

While the gift of appreciated assets often involves stock, other marketable assets, such as land, antiques, and homes, can be utilized as potential gifts with the possibility of valuable tax benefits. However, these other assets are reviewed on a case-by-case basis. For more information about gifts of appreciated assets, please contact us so we can respond to your specific needs.