Gifts of Appreciated Securities

A $5,000 cash gift and a gift of $5,000 in appreciated securities both generate the same charitable deduction. But if you use publicly-traded stocks, bonds or mutual fund shares that you have held for a year or longer to make your gift, you will receive an additional tax benefit: the IRS allows you to make your transfer to The Hotchkiss School without recognizing capital gains on the appreciation. You can thus leverage a larger donation than you could make with cash — and receive a larger tax deduction — by "buying low and giving high."

Your gift of securities is valued as of the day the securities reach our account if your broker transfers them electronically, or the postmark date if you mail them. Your gift value is the average of the high and the low prices for the securities on that date (for mutual fund shares, it is the net asset value).

Important Tip: Don't sell the stock first. Even though you give us the proceeds as a gift, the IRS will impose capital gains tax on your sale, wiping out the benefits of this arrangement.


To learn more about gifts of appreciated securities, Email us, complete the Information Request Form, or call us at (860) 435-3263 so that we can assist you.