Appreciated Securities

If you contribute long-term appreciated securities to us (such as publicly-traded stocks, or mutual fund shares held for more than one year), you receive a two-fold income tax benefit: a charitable deduction for the full fair market value, and no capital gains tax on the appreciation.

For example: If you donate $15,000 worth of stock that you purchased for $10,000, you would be entitled to deduct $15,000 – the full fair market value of the stock. In addition, you would avoid paying capital gains taxes on the $5,000 appreciation. So, if you were in a 26% tax bracket you would save $3,900 in income taxes and avoid paying another $750 (15% of the appreciation) for capital gains taxes on the gift. The charitable deduction you can recognize in one year is limited to 30% of your adjusted gross income, but any excess is deductible over the next five years.

The quickest and most convenient method to transfer appreciated securities is by broker-to-broker transfer. The Catholic Community Fund has established accounts to receive share transfers at all major investment firms. Contact Us to obtain the account numbers and let us help you facilitate the transfer of your gift.