Gifts of Stocks and Bonds
Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to Western Seminary.
Gift of Stock and Bonds
Stocks/Bonds
Benefits of gifts of stocks and bonds
- Avoid paying capital gains tax on the sale of appreciated stock
- Receive a charitable income tax deduction
- Further our mission today
How to make a gift of stocks and bonds
By electronic transfer - Please contact us for instructions on how you can transfer stock or bonds from your brokerage or investment account to Western Seminary.
By certified mail - If you hold securities in certificate form, you will need to mail two envelopes separately to complete your gift. In the first envelope, place the unsigned stock certificate(s). In the other envelope, include a signed stock power for each certificate. You may obtain this power from your broker or bank. Please remember to use certified mail.
More on gifts of stocks and bonds
There are special rules for valuing a gift of stock. The value of a charitable gift of stock is determined by taking the mean between the high and low stock price on the date of the gift. Mutual fund shares are valued using the closing price for the fund on the date of the gift.
Contact us
If you have any questions about gifts of stocks and bonds, please contact us. We would be happy to assist you and answer any questions that you have.
Example Stories
Avoiding Tax on a Business Sale
Albert was the founder and sole shareholder of a small technology company that he started 30 years ago. At 65 years of age, he began thinking about selling the business.Albert met with his advisors to discuss the company's value and identify potential buyers. Because the company's client base and product offerings had grown significantly over the years, Albert soon realized that the business would sell for a significant sum.
Albert: I knew I had a tax problem. If I sold the business, I would lose much of the value to taxes. I needed enough out of the sale so that my spouse and I could retire comfortably.
One of Albert's advisors recommended that he consider making a gift of some of his stock to his favorite charity. If Albert made the gift prior to the sale of his business, he would avoid capital gains tax on that stock and receive a charitable income tax deduction to further reduce his taxes on the cash he received from the sale.
Albert: I transferred $1 million in stock to the charity and received a $1 million charitable income tax deduction. When the company sold, I was so happy I had listened to my advisor and made the gift.
Albert's tax deduction made it possible for him to preserve his wealth by avoiding the payment of substantial capital gains tax on the sale of his business. As a result, Albert was able to use some of the cash from the sale to purchase a condominium and invest the balance for retirement.Is a gift of stock right for you?
An outright gift of stock can provide several tax benefits such as generating a charitable tax deduction and avoiding capital gains tax. Please contact us if you have questions about outright gifts of stock.*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to our organization.Since your benefits may be different, you may want to click here to view an example of your benefits.
Current Gifts
As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving. For years, they have created a gift list that includes family members, friends and loved ones. Last year, Jim and Sharon made an addition to their list and began including their favorite charity.
Sharon: Years ago, I inherited stock from my grandmother. Earlier this year, we decided to sell some of the stock. After we sold the stock, our CPA told us we would need to pay capital gains of nearly $120,000 from the sale.
Jim: That came as kind of a shock. Our CPA started to talk about ways we could offset the capital gains tax bill. We told him we were planning on making charitable gifts. Our CPA advised us that if we gave some of the remaining stock before the end of the year, we could receive a charitable deduction that would help offset the capital gains tax on the stock we sold.
Sharon: We contacted our favorite charity to discuss the best way to make a gift of stock. The gift planner explained the process and provided us with instructions that allowed our broker to directly transfer stock from our account to the charity's brokerage account.
Jim: That is what we decided to do. By transferring $80,000 in stock outright to charity, we received two benefits. First, we avoided a large capital gains tax on that stock, and second, we received a charitable deduction. The deduction even offset all of the capital gains from the stock sale. We are very pleased with the double benefits of our gift. And, we're delighted that we've been able to make a nice charitable contribution.
Jim: That came as kind of a shock. Our CPA started to talk about ways we could offset the capital gains tax bill. We told him we were planning on making charitable gifts. Our CPA advised us that if we gave some of the remaining stock before the end of the year, we could receive a charitable deduction that would help offset the capital gains tax on the stock we sold.
Sharon: We contacted our favorite charity to discuss the best way to make a gift of stock. The gift planner explained the process and provided us with instructions that allowed our broker to directly transfer stock from our account to the charity's brokerage account.
Jim: That is what we decided to do. By transferring $80,000 in stock outright to charity, we received two benefits. First, we avoided a large capital gains tax on that stock, and second, we received a charitable deduction. The deduction even offset all of the capital gains from the stock sale. We are very pleased with the double benefits of our gift. And, we're delighted that we've been able to make a nice charitable contribution.
Is a current gift right for you?
Making year-end charitable gifts, especially with highly appreciated property such as real estate and stocks, can be an excellent strategy to reduce your tax bill.
Please contact us if you think you have assets that would make a nice gift to charity. We would be happy to work with you to structure a gift that meets your needs.
*Please note: The names and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to click here to view an example of your benefits.