Gifts of Appreciated Securities
Giving stocks that have increased in value can be better than giving cash.
Donating appreciated securities leverages your giving and allows you to make a bigger impact on students. It also helps you avoid long-term capital gains taxes, gives you an income tax deduction for the full market value of the securities, and may reduce the value of your estate.
Tax Impact
Let’s say you bought securities for $2,000 five years ago that are worth $10,000 today.
If you sold this stock, you would pay capital gains tax on the $8,000 gain in value ($1,904 for those in the upper tax brackets)*. Your take away, including your original investment is $8,400.
Now, let’s say that instead of selling that same stock, you donated it to Minnesota State Mankato. Not only does the full $10,000 come to Minnesota State Mankato and serve as a charitable gift deduction on your taxes, but you pay no capital gains tax – thereby increasing your overall gift to Minnesota State Mankato. Be sure to consider securities you’ve held for at least one year. Using this strategy leverages your gift and allows your charitable dollars to go farther and have more impact.
Benefits of a Gift of Stock |
||
| Sell the Stock/Gift the Cash | Gift the Stock/Basis | |
|---|---|---|
| Market value of stock | $10,000 | $10,000 |
| Cost basis | $2,000 | $2,000 |
| Gain | $8,000 | $8,000 |
| Taxes on the gain | $1,840 | $0 |
| Gift to Minnesota State Mankato | $8,160 | $10,000 |
| Tax savings | $2,448 | $3,000 |
| Total benefit | $10,608 | $13,000 |
| *Assumes 30% tax and 15% capital gains brackets | ||
As always, we encourage you to consult with a trusted financial advisor regarding your particular situation. This scenario is for illustrative purposes only and each individual’s situation may be different.
How to Give
Arranging a transfer is the easiest and most preferred way to give appreciated stock. To transfer shares, provide one of the following accounts to your broker:
TD Ameritrade
Account: 494612955 DTC: 0188
PO Box 2760
Omaha, NE 68103
Stifel
Account: 21284023 DTC: 0793
112 S Riverfront Drive
Mankato, MN 56001
Attn: Mary Conley or Kayla Olsen
507-625-3127 or 800-395-3445
Gift Designations
After transfer is complete, please contact your Development Officer or Cindy Arndt to ensure your gift is designated for a specific purpose, program or department.
cynthia.arndt@mnsu.edu
507-389-6829
For paper stock certificates, you may personally deliver the certificates or mail them to the address below.
Contact Information
For additional information about making a stock gift, please contact:
Jodi Bruns
Senior Director of Advancement Services
126 Alumni & Foundation Center
Mankato, MN 56001
507-389-6832 or 800-662-2705
jodi.bruns@mnsu.edu
