Gifts of Stock & Appreciated Assets

How It Works

  • You transfer appreciated stocks, bonds, or mutual fund shares you have owned for more than one year to the JFS Foundation

  • The JFS Foundation sells your securities and uses the proceeds for an endowment.

Benefits

  • You receive an immediate income tax deduction for the fair market value of the securities on the date of transfer, even if you originally paid much less.

  • You pay no capital gains tax on the transfer when the stock is sold.

  • Giving appreciated stock can be more beneficial than giving cash. The "cost" of your gift is often less than the deduction you gain by making it.

A $10,000 cash gift and a gift of $10,000 in appreciated securities both generate the same charitable deduction. HOWEVER, if you use publicly traded stocks, bonds, or mutual fund shares that you have held for a year or more for a gift, you will receive an additional tax benefit: The IRS allows you to make your transfer to the JFS Foundation without recognizing capital gains on the appreciation. 

 

You can thus leverage a larger donation than you could make with cash, and receive a larger tax benefit, by "buying low and giving high." Your gift of stock is valued, for tax purposes, at the mean of the high and low on the date the shares are received in our account. Mutual funds are valued at the "net asset value." If you and your advisors are transferring assets at the end of the year, it is especially important to note the following.

  • For stocks transferred through the U.S. Post Office, the gift date may be found in the postmark. Stock certificates should be sent unsigned to the JFS Foundation with an executed stock power mailed under separate cover on the same day.

  • Gifts delivered by UPS, Fedex, or any other delivery company are credited, by law, on the day received by the JFS Foundation. 

We encourage you not to sell the stock first as even though you may give us the proceeds as a gift, the IRS will impose capital gains tax on your sale, wiping out the benefits of this arrangement.

A gift of appreciated securities is for you if:

  • You're holding stocks, bonds, or mutual fund shares that have increased in value.

  • You want to make a gift that doesn't affect your liquidity or cash flow.

  • You want to make an outright gift, or fund a gift that will first return lifetime payments to you and/or another beneficiary.

  • You want to diversify your assets to increase your income without having to pay the capital gains taxes that would result from a sale.

Questions? 

Gifts of securities such as stock and mutual funds are coordinated by the JFS Accounting team. Please feel free to contact us to guide you through every step of the process.
We'd love to hear from you!

CONTACT US

 

The JFS Foundation

5402 Arapaho Road

Dallas, TX 75248

972.437.9950