Give to the UW

Tax advantages

Donating appreciated securities gives you distinct tax advantages.

If you own publicly traded stocks or bonds that have appreciated in value and are long-term in nature (owned for more than 12 months), you may want to consider the income tax benefits of giving securities over cash*:

Here’s how it works:

Gift of Stock Gift of Cash
$3,000 (current value) $3,000
$1,000 (basis-your cost)
$3,000 (tax deduction) $3,000
$1,080 (tax savings @ 36%) $1,080
$400 (capital gains tax savings**)
$1,480 (total tax savings) $1,080
$1,520 (your gift cost) $1,920

* This example is for illustrative purposes only and should not be considered tax advice. Tax implications vary by individual circumstances please consult with your tax professional.

** $2,000 gain @ 20% capital gains tax. When you donate appreciated securities, you owe no capital gains tax on the appreciation.

What about stocks that have dropped in value?

If you own stock that has dropped in value, below your cost, consider selling this asset instead, and donating the proceeds. By selling the asset and then making a gift, you will be able to claim a capital loss deduction on your income tax return, and also claim an income tax deduction for your charitable gift.