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Donating Appreciated Stock

Did you know...

that appreciated stock is one of the easiest ways to give to Saint THomas Academy*? And appreciated stock is something we definitely appreciate!

Jeremy Milleson, Senior Investment Strategist for Parametric gave the following reason for why NOW is the best time to donate appreciated stock.

"So far this year, through the end of October, the S&P 500® Index is up just over 24% and is up almost 43% over the past 12 months. Having a highly appreciated portfolio position is great—until the investor is ready to sell that position. Given a 23.8% federal capital gains tax—which factors in the 3.8% Medicare surtax that applies to high earners—selling highly appreciated positions may be detrimental to investors. A way to completely avoid this liability is by donating the stock to charity. This enables investors to make their desired donation, deducts its value from their AGI, and sidesteps the capital gains tax that gets applied to stock sales."

"The benefit of giving securities over cash is that the investor also avoids the tax liability embedded in the investment. In the example with the securities gift of $50,000, the embedded gain of $25,000 represents a tax liability of close to $6,000, assuming the highest capital gains tax rate of 23.8%. By giving these securities to charity, the investor avoids this capital gains tax. The charity is also free to sell the security tax free, making the gift as good as cash."

To read the full article about why you should consider donating appreciated stock before the end of the calendar year, click here.

* Always consult your tax advisor before transferring securities

Saint Thomas Academy Stock Transfer Instructions and Form