GIFTS OF APPRECIATED STOCK

 

As an alternative to a current gift of cash, there may be added benefit in making a contribution of appreciated stock, the sale of which would otherwise give rise to long term capital gain.

A donor can sell appreciated stock at its fair market value, pay the tax on the gain, and contribute the remaining cash to RSF.  Alternatively, the donor can make a gift of the stock itself. The donor is treated as having made a contribution based on the stock’s fair market value.  Thus, rather than selling a stock and gifting the cash remaining after paying tax, a gift of the stock itself will eliminate gain recognition for the donor.

 

As a tax exempt entity, RSF can sell contributed stock and enjoy the full value of the gift, without reduction for tax.

 

Donors should consult with their brokers or investment advisors regarding the mechanics of transferring stock to RSF.  Please also notify the Treasurer of RSF who can help facilitate the transfer. The Treasurer can be reached at jaautrey@gmail.com.

 

The foregoing is a general discussion of charitable giving strategies and not intended as tax advice.  Donors should consult with their own tax advisors regarding the impact of various charitable giving strategies on their specific tax and financial planning objectives.

Rossmoor Scholarship Foundation is a nonprofit public benefit corporation exempt from tax under IRC section 501(c)(3).  Its federal tax identification number is 94-6126368. The address of the Foundation is P.O. Box 2056, Walnut Creek, CA 94595.

 

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