Gifts of Securities and Other Appreciated Assets
A gift of appreciated securities is a popular alternative to a cash gift because it actually saves taxes twice. You receive an income tax deduction for the full fair market value of your securities (if you’ve held them for more than one year) plus you also save the capital gain tax on the appreciation.
Give publicly traded securities that have appreciated in value. Receive a charitable deduction for the full fair market value of the securities on the date the gift is made. In addition, pay no capital gains tax on the appreciation.
- If you hold the stock certificate(s) yourself, mail them (unsigned) and a completed stock power form (PDF) to the address below. Sign a stock power for each certificate exactly as your name appears on the face of the certificate and mail the certificates and signed stock power to us separately via certified mail.
30 S. Wells St.
Chicago, IL 60606
- If stock is registered in more than one name, each person must sign the stock power form.
- If you are giving more than one type of stock, send a stock power form for each stock.
- If your stock certificates are held with a bank or a broker, please instruct your broker to transfer the stock electronically. Please use Jewish Federation’s account with Muriel Seibert & Co. at DTC #226 – Jewish Federation Account Number ON2 – 886670.
Notify Jewish Federation before making your gift of securities. Include the date, stock name, number of shares and cost basis. Without prior notification, stock gifts transferred to Jewish Federation without the identity of the donor, make it difficult to credit and acknowledge the donor.
Closely Held Securities
Give stock from closely held corporations. Closely held securities can be especially attractive in funding charitable remainder trusts or charitable remainder lead trusts. Special regulations apply to gifts of this kind. Consult your tax advisor and Jewish Federation when considering such a gift.
Give real estate that has appreciated in value. In most cases, a gift of real estate entitles you to a charitable deduction for the property’s full fair market value.
- Real estate can be used to make an outright gift or to make certain types of planned gifts, resulting in a charitable deduction as well as reduced estate taxes.
- Real estate can be placed in a trust and the proceeds from the sale of the property can provide you with a lifetime stream of income.
Lost Value Securities
Securities that have lost value are not usually considered for gift purposes. Consider selling the security and claim the capital loss deduction while donating the cash proceeds as a gift to Jewish Federation.
For more information, please contact us at 312-357-4853 or firstname.lastname@example.org.