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Score a Triple Play by Giving Appreciated Stock

Now is a great time to consider supporting the students of Portland State with a gift of appreciated stock. 

Given recent positive returns in the stock market, many investors are likely to own shares that have substantial unrealized gains.  By contributing those shares to Portland State, you can score a triple play of benefits for your giving: avoid capital gains tax on their increased value; earn a great income tax deduction; and enjoy helping PSU students to the education they need.

 

 

 

 

 

 

 

 

In 2011, Duane and Barbara McDougall fulfilled a pledge with a gift of Apple stock: "Giving appreciated stock is a great way to increase your support for students and secure some tax benefits for yourself. Your gift can 'cost' you a lot less than its face value." - Duane McDougall

 

For example, let's say you bought stock for $12,500 and today it is worth $25,000.  If you sold the $25,000 stock, you would pay 15 percent capital gains on the $12,500 gain in value.  That’s $1,875.  If you donate it, you avoid paying that $1,875 – and you can claim a deduction for the full $25,000 market value of the shares you donate.  If you are in the 25 percent federal income tax bracket, that could generate a savings of $6,250.  Altogether, that’s $8,125 in tax savings.

What might you do with that gift of $25,000?  Establish an endowment that would provide generations of PSU students with a $1,000 annual scholarship.

Remember, when making gifts of appreciated stock, it’s best to give shares that have been held for more than a year.  If held for a year or less, the shares are treated as ordinary income property for these purposes, and the charitable deduction would be limited to their cost basis.  Always consult your financial advisor for advice on how giving appreciated stock might fit your individual circumstances.

What's the bottom line? Gifts of appreciated stock can be a great way to achieve tax savings and create more opportunity for students at Portland State. 

To learn more about how you can make a gift of appreciated stock to Portland State, please contact Karie Trumbo, at 503.725.2298 or ktrumbo@pdx.edu