Giving appreciated securities is a tax-wise way to support your mission. For securities held longer than one year, you can deduct their full fair market value, regardless of what you originally paid for them. You also avoid paying capital gains tax.
A security is a tradable financial asset of any kind; they may be classified into the following groups:
- Debt securities: Treasury bonds, banknotes, corporate bonds, CDs, and debentures
- Equity securities: Common stocks and mutual funds
- Derivative securities: Stock options, futures, forwards, and swaps
Strategy Tip: If a donor wishes to maintain stock holdings in a specific company, it may make sense to give appreciated shares to CFGP and then buy an equivalent number of shares with cash, thus establishing a new, higher cost basis.
To transfer appreciated stock to CFGP:
- You will need to work directly with your broker to initiate a transfer of stock to CFGP
- Make sure that your broker includes your name, address, specific stock and number of shares, as well as the designated purpose of the donation in the transfer
- If your assets include certificates, those certificates should remain unendorsed and you should complete a separate stock power form authorizing transfer of ownership
Learn more about the steps in thoughtful planning. The Catholic Foundation of Greater Philadelphia is established to be a tool for you to leave a lasting and secure legacy. Use our request for information form to learn more.