Gifts of appreciated stocks, bonds and mutual funds
Gifts of appreciated shares benefit both donor and recipient.
- If you sell shares to make a cash donation, you have to pay taxes on the capital gains and donate the remaining balance. By donating the shares themselves, you avoid capital gains taxes, can donate the full value of the shares at no extra cost, and get tax savings on the higher, untaxed amount donated.
- Because Bartimaeus Cooperative Ministries is a 501(c)(3), we do not pay capital gains taxes when we sell the shares, meaning we can put the full value of the shares to work in the world.
Consider gifts of shares if:
- You itemize deductions.
- Your shares have appreciated. (If they have depreciated, you are better off selling them to take the losses on your taxes and make a cash donation to BCM.)
- You have held the shares more than a year. (Shorter-term gains do not get the tax advantages available to long-term gains.)
Your deduction amount will be the fair market value of the shares on the date the shares are received into BCM’s account. BCM’s policy is to immediately sell donated shares.
Because the process can take a few days, leave plenty of time to complete the gift before any deadline you may have. Check with your current account custodian or financial advisor for their deadlines; some firms have early deadlines for starting such gifts.
You will need forms and specific information from your own account custodian or financial advisor. Contact firstname.lastname@example.org for the relevant information for the receiving account.
Thank you for supporting the work of Bartimaeus Cooperative Ministries!