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Contact information:

Institutional Advancement

P.O. Box 9
Milligan College, TN 37682
423.461.8955
800.447.5922


Gifts of Appreciated Securities 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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