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Appreciated Securities

A $5,000 cash gift and a $5,000 gift in appreciated securities creates the same charitable deduction – but that doesn’t make them identical. Giving your appreciate securities such as publicly traded stocks or bonds directly to TCNJ Foundation eliminates your need to pay capital gains tax.

Is donating stocks or bonds a good idea?

It may be if:
  • You have stocks, bonds or mutual fund shares that have risen in value.
  • You want to maximize your deduction. 
  • You want to make a gift that first returns lifetime payments to you.
  • Seek a tax deduction – you can deduct the full, fair market value of the appreciated asset you donate AND avoid capital gains tax liabilities. 

How is the value of your gift determined?

The value is set the day it reaches our accounts if sent electronically OR, the postmark date if you mail your shares. The amount is the average of the high and low prices for the asset on the date it reaches our account. For example – if the high for that day is $80 and the low is $70, your gift deduction would be $75 per share.
IMPORTANT – Do not sell the stock. This 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.
Assets with a lower value – It is generally advisable to NOT donate an asset which has declined in value.  It is generally advisable to sell the asset and 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?

If your broker holds the shares, they should contact Jim Spencer (609-771-3285) for transfer instructions.
If you hold the shares yourself, mail them unendorsed (remember to insure your envelope). In a separate envelope, mail a stock power signed in blank for each stock certificate.
Office of Development & Planned Giving
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% of your Adjusted Gross Income (AGI – found at the bottom of the first page of Form 1040).
Example: 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% amount, you can carry forward excess deductions through the next five tax years following the year you made your gift.
IRS guidelines allow you to deduct up to 50% of your AGI for cash gifts. Your tax advisor can always tell you which type of gift is best for your personal financial situation.