With the recent strength in the stock market, now is the perfect time to consider using highly appreciated stock from your investment portfolio as the funding source for your charitable gift. Gifts of highly appreciated stock result in a win-win for both the donor, who removes the future capital gain tax liability from their portfolio and for ARCS Foundation Oregon, who can immediately use the funds for their mission to support our future scientists. 

Giving an appreciated stock gift to charity is easy. First, determine the dollar amount you wish to give. Then look over your non-retirement investment accounts and locate the shares with the largest percentage gain. You’ll want to make sure you’ve held the stock for at least one year to reap the tax benefits of using stock to fund your gift. Once you’ve identified the stock(s) to gift, simply look up the current stock price and determine the number of shares you’ll need to match your intended gift amount. Keep in mind that you don’t have to gift all of your shares of a specific security, and you can use multiple stocks to fund your gift.  

Now that you’re ready to make your gift, you can either call ARCS or click HERE for the stock transfer form with the information needed to send your shares. ARCS Foundation will receive the shares and sell them with no capital gains tax liability to the benefactor. ARCS Foundation Oregon will acknowledge your gift in writing, which can then be provided to your tax preparer. From a tax perspective, if you itemize deductions on your tax return, you can include up to 30% of your adjusted gross income as a deduction on your tax return. Any amount over 30% can be carried forward to use over the following five tax years.  

Note: Please consult your tax professional prior to making large charitable gifts.  

Author: Sharon Gueck, CFP®, CPWA® 
Becker Capital Management, Inc. 
ARCS Oregon's Investment Management Team