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Gifts of Appreciated Securities: STOCKS, BONDS, MUTUAL FUNDS, AND OTHER ASSETS

Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. Reason: Gifts of such property provide a double benefit—a charitable deduction, in most cases, for the full fair-market value of the property—plus avoidance of any potential capital-gain tax.

The chart below illustrates the additional tax savings from a gift of appreciated assets.

		Cash	Appreciated Property
A.	Fair-Market Value	10,000	10,000
B.	Cost Basis	10,000	4,000
C.	Capital Gain	0	6,000
D.	Capital-Gain Tax (15%)	0	900
E.	Charitable Deduction	10,000	10,000
F.	Actual Tax Savings (28%)	2,800	2,800
G.	Total Tax Savings (D+F)	2,800	3,700

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Office of Planned Giving
University of Michigan Office of University Development
734-615-2022 • toll free 866-233-6661 • Contact Us
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The University of Michigan OFFICE OF DEVELOPMENT
Wolverine Tower • 3003 South State Street, Suite 9000 • Ann Arbor, Michigan 48109-1288
phone: 734-615-2022 • fax: 734-647-6100 • e-mail: giving@umich.edu

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