Appreciated Stock
(and other appreciated assets)

Goal: Avoid capital gains tax on securities sale.
Benefit: No capital gains tax and charitable deduction based on fair market value.

The gift of an appreciated asset, often common stock or mutual fund shares, is a valuable way to make a contribution to a charitable organization and receive tax benefits based on the value of the asset(s). The process is very simple - please contact the McLeod Foundation Office at (843) 777-2694 to express your wishes for the gift and to receive transfer information.

Suppose a couple in this example had 300 shares of XYZ Corporation that they purchased at $15 a share some years ago. The current value in today's market is $36 a share. If they sold the stock in the market, they would have a taxable, long-term capital gain on the difference between their cost and what they would receive from the sale ($36 minus $15 = $21 capital gain per share. 300 shares X $21.00 = $6,300 in capital gains).

The donors could sell the stock, pay the tax on the capital gain, and either keep or donate the proceeds. If, however, instead of selling the stock, they gave the 300 shares to charity, they would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) on their tax return as a charitable gift. By donating the stock, the charity receives a larger gift than it would receive if the donors first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, the donors receive a greater tax deduction by giving the stock directly to the charity and avoiding the capital gain tax.

While the gift of appreciated assets often is stock, other marketable assets (called tangible personal property, see below) can be utilized as gifts with the possibility of tax benefits. These are assets such as real estate, antiques, coin or stamp collections, and art. However, these are reviewed on a case-by-case basis. For more information about gifts of any appreciated assets, please contact us so we can respond to your specific needs.

Tangible Personal Property Explained

Goal: Make a gift of real property, such as coins, stamps, antiques or art/
Benefit: A charitable tax deduction and the possibility of income for life if done through a trust.

Tangible Personal Property, such as art, jewelry, coin collections and household furnishings can be gifted recognizing that there are specific guidelines from the IRS as to the tax deductibility of the gift. Two key issues to be considered before contributing a gift of this type is whether or not the item(s) can be put to related use or whether its use or function is related to the tax-exempt purpose of the charity to which it is donated.

The IRS has very specific guidelines for appraising and reporting gifts of tangible personal property, which must be followed to support a charitable income tax deduction.

There are also requirements regarding the size and value of the gift and time frames within which reports must be filed. Gifts such as these may require approval by our Board of Directors.

  • Wise Investments Benefit Families at McLeod Hospice House

    How Your Appreciated Stocks Can Be Used for Good

    Tim Cunningham is always deliberate with financial decisions.

    When the longtime financial advisor and Chairman of the McLeod Health Foundation Board learned that McLeod would be building the first inpatient hospice facility in the region, he decided to make a tax-wise gift of stock shares that had grown in value over the years.

  • A Tribute to Family Offers Enduring Benefits for Our Community’s Health Care

    As a lifelong resident of Florence, the late Betty-Ann Darby watched McLeod Health grow from a small hospital with humble beginnings to the impressive regional medical center that serves our community today. “I have the greatest regard and respect for McLeod,” Betty-Ann said. “They are a tremendous benefit to the community.”

    Read More
  • A Personal Conviction for Improved Quality of Life

    From day one, McLeod Health has held a special place in Tim Cunningham’s heart. “I was born in the old McLeod Infirmary, which evolved into McLeod Regional Medical Center in 1979,” Tim said. Many years later, Tim received a Master of Public Health Administration and began a career with a health planning agency. One of the agency’s projects focused on assessing the region’s health care needs.

    Read More

For more information or a confidential discussion of your charitable options, please
email or call, Elizabeth Jones, at (843) 777-2694.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. You may also contact a member of the Professional Advisory Council. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Legacy Giving section has been developed for McLeod Health Foundation and is owned by Future Focus. Please report any problems to section webmaster.