Donating Appreciated Securities

If you wish to make a donation to the SCR Foundation and you own an appreciated security (stock, bond, or mutual fund) you've held for one year or more, there are tax advantages to donating one or more shares of that security. You will not owe capital gains taxes on the appreciation and you can deduct the current market value of the stock as a charitable contribution if you itemize deductions on your income tax return. A further benefit is that, if you will be writing off losses against gains on your return, you do not need to include the donated gain. If your losses then exceed your non-donated gains, you can deduct the excess up to $3000 ($1500 if married filing separately) from other income - a greater tax saving because income tax rates are higher than capital gains tax rates.

Donating securities is a easy thing to do. Just send a letter of instruction to your brokerage firm directing them to transfer the security to the Foundation. There are no fees charged for the transfer. You can download a fill-in form for this transfer or leave a message on our Help Line, 774-9040 to get a form or further information.

These comments are for your guidance and should not be considered as professional tax advice. Your tax preparer/advisor can advise you how this type of donation may fit your specific situation.