Gifts of appreciated stocks and bonds are very popular among Columbia alumni and friends. If you are considering a donation of $1,000 or more, there are many tax advantages to giving securities.
Among the many potential tax advantages, you’re entitled to a federal income-tax charitable deduction when you file an itemized return, and many state income-tax laws also allow this type of deduction. When the donated items have been held for more than one year, you may claim a deduction for their full fair-market value, and after appreciated securities are donated, you avoid paying tax on the capital gain.
Note: Always discuss donations with your tax consultant to maximize your benefits.
A gift of long-term appreciated securities may be claimed as an income-tax charitable deduction in the year of the gift up to a limit of 30 percent of your adjusted gross income. Any excess deduction not claimed may be carried forward for an additional five years. If the donated securities have been held for less than 12 months, only your cost basis is deductible.
Many companies will make a matching gift to Columbia when one of their employees makes a donation. To find out if your company has such a program, use our convenient search engine.
Gifts of Closely Held Stock
You may be unaware that you may make gifts of closely held stock and other non-readily-marketable securities; moreover, they offer many tax advantages. These gifts involve special handling, however, and you are urged to contact the Office of Gift Planning to explore the alternatives for structuring this type of gift.
If you hold securities that have declined in value, it is generally advisable not to donate them but rather to sell them to establish a tax loss and then donate the proceeds to Columbia.