How to Donate Stock
With the stock market regularly breaking records at the closing bell, many of your investments are likely worth more today than what you originally paid for them.
Time to sell? If you do, you might have to pay capital gains taxes. There’s a better option that provides you with valuable tax incentives as well as the satisfaction of supporting a cause close to your heart: Give your stock to Southern Methodist University.
When you give SMU appreciated securities that you’ve owned for more than one year, you will receive two tax benefits:
- You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their lower original cost.
- You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you sold the stock.
Reap the Rewards
To realize full tax benefits from your gift, keep the following IRS guidelines in mind:
- Donate long-term appreciated property. For short-term assets (owned one year or less), only the amount you originally paid is deductible.
- Watch the ceiling. The gift deduction for long-term capital gain property is limited to 30 percent of your adjusted gross income in the year of your gift, but the excess is deductible over the next five years.
How to Make a Gift of Stock
If you have the physical securities:
- Hand-deliver them to us; or
- Mail us the stocks and stock power in separate envelopes for your protection.
If you don’t have possession of the physical securities:
- Instruct your broker to electronically transfer your intended shares; and
- Ask your broker to notify us once the transfer is complete.
SMU's Transfer of Securities Form can be found here. We ask that you provide us with the following information:
- Your name and contact information
- Name of the brokerage company transferring the securities
- Name of security and number of shares to be transferred
- Approximate value of your gift
- Intended purpose/designation of your gift
We’re Here to Help
To discuss using your stock holdings to support our mission, feel free to contact SMU's Office of Gift Planning at 214-768-1911 or firstname.lastname@example.org. Together with your advisor, we can help you fulfill your charitable goals and protect your assets from unnecessary taxes.