Gifting Publicly Traded Securities and Closely-Held Stock

Appreciated Securities

Giving appreciated securities is one of the most popular methods of giving because they can provide so many significant tax benefits to a donor and can be used to establish a fund or add to an existing fund.

Donors who contribute long-term appreciated securities to the Foundation get a triple tax benefit:

The deductible amount for gifts of appreciated securities depends in part on whether the stock was held by the donor for more than one year.

You can also give securities with a bequest in your will or living trust.

Closely-held Stock

Closely-held stock can be contributed outright to the Community Foundation and the donor is entitled to a deduction for the appraised fair market value. The donor also avoids the potential capital gains tax on any appreciation. Subsequent to the gift, Mt. Pleasant Area Community Foundation may sell the stock to the corporation or to other shareholders for cash. There can be no prior agreement between the charity and a potential buyer before the gift is made.