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(Complete gift description)
Give appreciated securities to the Guggenheim and you shall receive—a tax break. Whether it's 100 shares of blue-chip stock or a new high-tech start-up, our government, allows you to deduct these gifts as charitable donations. Moreover, you also avoid capital gains tax on the transfer.
This double benefit means that you can leverage a larger donation by using appreciated securities rather than cash to make your gift. Here's how it works:
Assumptions: Donor in 33% Income Tax bracket; Capital Gains Tax rate 15% |
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 |
$10,000 |
$10,000 |
$15,000 |
Charitable Deduction |
$10,000 |
$10,000 |
$15,000 |
Tax Savings @ 33% |
$3,300 |
$3,300 |
$4,950 |
Capital Gains Tax Saved |
$0 |
$750 |
$1,125 |
Net Cost of Gift |
$6,700 |
$5,950 |
$8,925 |
The extra tax saved by using appreciated securities instead of cash to make a $10,000 gift is clear. Now look at the results for the $15,000 gift of securities. With total tax savings of $8,925, it costs you just $2,225 more to make this contribution than the $10,000 cash gift ($8,925 - $6,700)—and to deliver 50% more benefit to the Guggenheim.
We welcome gifts of publicly traded stocks, bonds, and mutual fund shares. Some donors own stock in closely held corporations; click here to learn about using those assets to make a gift. The securities you use to make your gift must have been held by you for more than one year to be fully deductible.
PLEASE NOTE: These Examples are for illustrative purposes only and, like all the information on this website, are not intended as legal or tax advice. Consult your own legal and tax advisors prior to making any material decisions based on this data.
Securities fluctuate in price—how will my gift be valued?
Gift securities are values at the average of the high and low prices for the security on the date of its transfer to us. If the high bid was $80 and the low was $70 on the day you made your gift, your gift will be $75 per share.
If the stock you donate is held by your broker, the gift date is the day the stock reaches our account. If you hold the certificates yourself and mail them to us, the gift date is the postmark date on the envelope.
Donors of mutual fund shares use the fund's net asset value on the day the shares reach our account.
Is it difficult to transfer securities?
Not at all, and we can help you through every step of the process. Click here for all the details.
Creative plans for securities gifts
Use your gift of appreciated securities to fund a life-income gift at the Guggenheim like a charitable gift annuity or a unitrust. Pay no up front capital gains tax on the transfer, and receive lifetime payments from your gift plan that equal or surpass the dividends the securities are paying now. The result? You make a gift to the Guggenheim while diversifying your portfolio and securing a stream of income.
For more information
E-mail us, complete the personal illustration form, or call us at 212 423 3500 so that we can assist you through every step of the process.