There are several advantages for you to give stocks, bonds, or mutual funds to the New York Credit Union Foundation (NYCUF). Donor benefits include:
- Charitable deduction for market value
- Avoidance of capital gains tax
- Reduction of estate tax
Securities that you have owned for more than twelve months and that have increased in value are subject to the capital gains tax when sold. However, if you make a gift of these securities to the NYCUF, you get a charitable deduction for the full fair market value as of the day of transfer, avoid the tax on the capital gains and reduce the potential estate tax.
Example: Joe P. owns $10,000 worth of ABC Corporation stock, which he purchased for $2,500 five years ago. By donating this stock to a charity, he receives a charitable deduction of $10,000 and avoids tax on the $7,500 of capital gain.
Before making a donation of appreciated securities please complete or have your broker complete the Appreciated Securities Gift Data Form and send it to the NYCUF.
If you are considering a gift of stock that has depreciated in value, the best advice is to sell the stock, take advantage of the loss for tax purposes, and make a charitable gift with the proceeds from the sale.
