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Expertise to Accept a Wide Range of Assets
When you ask Jim Youde about the best advice he has received from his financial advisor, he is quick to answer: “Make a gift of appreciated stock.”
“Judith and I had held one company stock for about ten years. It had appreciated greatly - so much that our cost basis would have resulted in substantial taxes on the realized gain, the difference between what we paid to purchase the stock and its current value.”
Jim and Judith gifted the stock to the Community Foundation and avoided this taxable event. In addition, they were able to take a tax deduction for the full market value of the stock. The resulting tax savings offset most of the stock’s original purchase cost.
The Youdes’ gift also translated into community good. They established the James and Judith Youde Family Advised Fund at the Community Foundation.
“Through our Donor Advised Fund we are helping provide food to the 23,000 citizens in our community who face hunger each year. It is gratifying to know that our fund will exist in perpetuity, creating a personal legacy for Judith and me to support people in need long after we are gone.
How a gift of long-term appreciated stock can work
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Individual Sells Stock
Keeps Proceeds |
Individual Makes
Charitable Gift |
| Stock Value |
$50,000 |
$50,000 |
| Cost Basis |
$5,000 |
Does not matter |
| Capital Gain |
$45,000 |
Avoided |
| Capital Gains Tax (15%) |
$6,750 |
$0 |
| Proceeds after Sale |
$43,250 |
$50,000* |
| Charitable deduction |
$0 |
$50,000 |
*Received by charity, not by individual
This illustration represents an example. To determine how gifting appreciated stock can benefit you, contact your tax advisor.
Expertise to Accept a Wide Range of Assets
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