Gifts of Appreciated Securities: The Details

Did you know giving stock can be more beneficial than giving cash?

A $5,000 cash gift and a gift of $5,000 in appreciated securities both generate the same charitable deduction.

But when you use publicly-traded stocks, bonds or mutual fund shares that you have held for a year or longer to make your gift, you will receive an additional tax benefit. The Internal Revenue Service allows you to make your transfer to the National Audubon Society without being taxed on the capital gains or appreciation. You can thus leverage a larger donation than you could make with cash — and receive a larger tax benefit — by "buying low and giving high."

Your gift of stock is valued, for tax purposes, at the mean of the high and low on the date of transfer. Mutual funds are valued at the "net asset value".

If you and your advisors are transferring assets at the end of the year, it is especially important to note the following.

• For stocks transferred through the U.S. post office, the gift date is postmark date.
• Gifts delivered by UPS, FedEx, or any other delivery company are credited, by law, on the day received by Audubon.

Important Tip: If the stock has appreciated and has been held for more than a year and a day, if you sell it, you will be subject to capital gains tax on the appreciation. If you give the appreciated stock to Audubon, you will NOT pay tax on the capital gains. Even though you may give us the proceeds as a gift, IRS will impose capital gains tax on your sale.

Please contact us so that we can assist you through every step of the process.

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