Donating appreciated securities is an alternative to a cash donation that could be beneficial to you at tax time. While a $5,000 cash gift and a $5,000 gift in appreciated securities creates the same charitable deduction, gifting your appreciated securities — such as publicly traded stocks or bonds — directly to TCNJ Foundation can eliminate your need to pay capital gains tax.
Is donating stocks or bonds to TCNJ right for you?
This option may be a good choice if:
- You have stocks, bonds, or mutual fund shares that have risen in value and you’ve held them more than a year.
- You want to maximize your deduction by deducting the full, fair market value of the appreciated asset you donate AND avoid capital gains tax liabilities.
- You want to make a gift that benefits TCNJ and works out in your financial favor.
How is the value of your gift determined?
The value is set on the day your stock transfer reaches our accounts if sent electronically — or on the postmark date if you mail your shares. The value is calculated as the average of the high and low prices for the asset on the date it is marked received. For example, if the high price for that day is $80 and the low price is $70, your gift deduction would be valued at $75 per share.
Two helpful tips to consider when donating
- To maximize tax deduction on assets that have appreciated in value, avoid selling your stock and gifting the cash to the college—which will expose you to the full capital gains liability. It is the policy of TCNJ Foundation, Inc. to sell the asset immediately, and TCNJ Foundation pays no gains tax.
- If the asset you wish to gift has declined in value, it is generally advisable to sell the asset, claim the capital loss on your taxes, and then donate the value. You receive a deduction for the amount of the sold asset.
How do I transfer assets to TCNJ?
If your broker holds the shares, please ask them to contact Candyce Newell at 609.771.2532 for transfer instructions.
If you hold the shares, please mail them unendorsed — and remember to insure your envelope. In a separate envelope, mail a stock power (legal power of attorney form for transferring stock share ownership) signed in black for each stock certificate donated.
Mail your gift to:
Development and Alumni Engagement
The College of New Jersey
PO Box 7718
Ewing, NJ 08628-0718
Can I deduct the full amount of my gift?
Yes, within limits established by the IRS. You can deduct gifts of appreciated assets up to 30 percent of your Adjusted Gross Income (AGI — found at the bottom of the first page of Form 1040).
If your AGI is $100,000 this year, you can deduct up to $30,000 in gifts of stocks. If your gift exceeds the 30 percent amount, you can carry forward excess deductions through the next five tax years following the year you made your gift.
Note: IRS guidelines allow you to deduct up to 60 percent of your AGI for cash gifts. Your tax advisor can always tell you which type of gift is best for your personal financial situation.