Giving appreciated securities is better than giving cash because you get the tax deduction on the donation at its appreciated value without paying capital gains tax on the appreciation. You will be providing the same level of support, but at less cost to you.

For example, suppose the shares you bought for $1,000 now have a market value of $5,000. If you donate them to The Kathleen A. Sullivan Fund, you not only can offset the $5,000 donation against income, you will also avoid the tax on the $4,000 capital gain. That is why it is better to transfer the stock to The Kathleen A. Sullivan Fund rather than selling it and giving the KAS Fund the money. The Community Foundation (The Kathleen A. Sullivan Fund is a fund of the Community Foundation of Greater New Haven) then liquidates the stock and uses the cash for tax exempt purposes. Because the Community Foundation is a qualified charity, it is not required to pay capital gains tax on the sale of the appreciated stock.

Beware, only your cost basis is deductible for appreciated securities that you have held for less than one year and one day. Also, for stock that has decreased in value, it is usually more advantageous to sell it, claim the loss on your tax return and contribute the cash proceeds.

To donate Appreciated Securities please download the gift transfer form for brokerage firm you intend to use from the "Files" panel to the right. Note: these forms require Adobe Acrobat Reader which may be downloaded for free by clicking here.

If you have any questions, or need any assistance please contact us.