Give Appreciated Stocks


Donating stock (appreciated securities) can be an effective tax-planning move that allows people to be more generous to the charities they hold dear. 

A gift of stock makes sense when: 

  • People hold significant assets in investments instead of cash or when compensation comes as stock options instead of cash salary 
  • People held the security for at least 12 months 
  • The stock increased in value (meaning the sale would trigger capital gains taxes) 
  • Your taxable income is over $40,000 (single) or $80,000 (married filing jointly) 
  • You itemize your deductions 

Such a donor does not pay capital gains on stock donated to a charity (either 15% or 20% of the stock’s capital gain) while also being able to claim their full market value. 

This allows more of the gift (the amount of tax that would have been paid) to go to a charity than if the donor sold the stock, paid taxes, and donated the remaining funds. 

We encourage you to consult your own financial advisor to explore the implications of a gift of stock given your specific circumstances.   

To make a gift of appreciated securities to the Wisconsin Conference or other UCC institutions, please contact the Rev. Andrew Warner at the Wisconsin Foundation UCC (email link).   

Your generosity will not only reduce your taxes but will allow our congregation to make a greater impact in our community. 

Example of the Less Taxes and More Impact from a Gift of Stock 

A person donates $11,000 in stock. She has a taxable income of $45,000 and files her tax return as a single person. She purchased the stock for $5,000 ten years ago. 

Donor   

Scenario #1 

Sell Stock and Gift Proceeds to Charity 

  

Scenario #2 

Gift Stock to Charity 

Market Value of Stock  $11,000  $11,000 
Sells Stock and realizes a Capital Gain  $6,000 (11,000 – 5,000)  N/A 
Capital Gain Tax Rate  15%  N/A 
Taxes Paid on Gain  $900 ($6,000 x 15%)  N/A 
Donation to Church  $10,100 (11,000 – 900)  $11,000 
Donor’s Tax Deduction  $10,100  $11,000 

 

 

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