Gifts of Appreciated Stock

This post by Anthony J. Capobianco, ChFC, CLU, Principal, Capobianco Financial Advisors, and Amy S. O’Connor, Esq., Shareholder, McNamee, Lochner, Titus and Williams, P.C. Both Mr. Capobianco and Ms. O’Connor provide leadership to the Community Foundation for the Greater Capital Region through the Professional Advisors Steering Committee. 

It has been a very good year for stock investors. Most of the major stock indexes have experienced substantial gains and moved into record territory. As of the end of October, both the Dow Jones Industrial Average and the S&P 500 soared to less than 1% below their all-time highs. In fact, the S&P 500 is up more than 25% through the end of October. These healthy gains have been recognized in the Capital Region as well, as evidenced by the surge in value of many local companies.

Appreciated_Stock_2013

A sampling of investment returns for selected Capital Region companies.

Donating appreciated stock is a simple, smart way to turn your stock market gains into community good. Prior to year end is a good time to consider gifting some of your stock that has appreciated in value. When appreciated securities, held for more than a year, are donated to the Community Foundation the donor generally enjoys an income tax deduction for the asset’s full market value and avoids tax on the capital gain.

Giving appreciated stock through the Community Foundation is a popular vehicle that appeals to a range of donors – individual investors, families, entrepreneurs, and even groups of friends who have formed an investment club.

There are a variety of ways to gift stock to the Foundation:

  • Make a general gift to benefit many local charities.
  • Establish a charitable fund that benefits specific causes or nonprofit organizations that you care about.
  • Set up a scholarship fund.
  • Support programs for youth and families, health care, senior citizens or other people in need.
  • Address environmental concerns.
  • Support the arts.

The Community Foundation is able to help you achieve your personal charitable goals. To learn more about transferring appreciated securities directly to the Community Foundation for the Greater Capital Region, please call our office at (518) 446-9638.