Many people have stocks or mutual funds that have increased in value since their purchase. By using these stocks or mutual funds for some of your charitable giving, you can conserve cash for other uses and maximize the value of your charitable gifts. You can deduct the fair market value of qualified non-cash property, and you pay no capital gains tax on gifts of long-term appreciated property (held for at least a year and a day). You can gift all or any part of the shares you own.
For example, if you own 500 shares of a stock, you can choose to gift 153 shares or any number you choose. You don't have to gift the entire 500 shares.
Stock and mutual fund gifts are a "win-win", both for you and for St. Michael the Archangel.
Here's how it works:
| Sell Stock & Gift Proceeds | Gift Stock | |
| Value of Stock | $5,000 | $5,000 |
| Original Purchase Price | $1,000 | $1,000 |
| Amount of Appreciation | $4,000 | $4,000 |
| Capital Gains Tax | $1,000 | NONE |
| Proceeds to St. Michael | $4,000 | $5,000 |