Stocks, Bonds, Mutual Funds
Giving gifts of appreciated property in the form of stocks, bonds or mutual funds will provide greater tax benefits than a cash gift of equivalent value, especially if they have a low cost basis. You will receive a charitable deduction for the full market value of your property—even if you initially bought it for far less. You will also avoid capital gains tax—money you’d have to pay if you liquidated the property.
You may deduct the full fair market value of gifts of long-term capital gain property up to 30% of your adjusted gross income. Any amount in excess of the 30% ceiling can be carried forward for five years.
Key benefits to remember:
- Charitable deduction for the fair market value, not the original investment
- No capital gains tax
- No minimum required
- Multiple gifts can be combined to establish a fund
- Substantial tax savings
- Reduces the size of your estate
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