Generosity Multiplies with Appreciated Securities Gifts

Donors who want to get the most bang for their buck with their year-end donations can find extra benefits by looking at their portfolio. Donating appreciated securities, which have been owned for more than one year, can double the benefits of giving. Those who donate securities will get both a charitable income tax deduction and avoid paying capital gains tax on the sale of appreciated stock.

Leadership Gifts Officer for Planned Giving Renée Mayo ’93 explained the benefit with an example of how someone could make a $10,000 gift to George School that would only cost the donor $6,000.

“Let’s say that Joan and David decide to fund their gift to George School with stock instead of cash. The stock, purchased some time ago for $2,000 is now worth $10,000. They get a tax deduction of $10,000 that saves them $2,800 in federal taxes, assuming they are in the 28 percent tax bracket,” Renée explained. This amount is the same whether the gift is in appreciated stock or cash.

“Here is the difference. Donors who make a gift of appreciated stock also avoid paying capital gain taxes on the appreciation, in this example $8,000. This is an additional savings of $1,200, or 15 percent of the $8,000. This $4,000 total in tax savings represents a net cost of $6,000 for their $10,000 gift,” she continued.

When donors compare the tax savings of a gift of appreciated assets versus the tax savings of a cash gift in this example, the additional $1,200 in savings are clear.

During the 2016–2017 fiscal year, more than two thousand people made George School a philanthropic priority. With the support of the entire George School community, we can continue to provide our students with the innovative, rigorous education, and supportive global community that are our hallmarks.

For more information contact Renée at 215.579.6574 or email rmayo@georgeschool.org.

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