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Giving Through Your Appreciated Assets

December 03, 2018

You can usually deduct the full value of appreciated long-term assets you've held for more than one year, such as stocks, bonds or mutual funds. In addition, if you donate stocks or other investments, you pay no capital gains tax.

How It Works

If you are considering donating stocks, bonds or mutual funds, talk to an investment professional to determine if you have long-term or short-term investments on your hands. This is a key factor that will determine your next steps. 

After the types of investments are identified,  the investments are contributed directly to the charity of your choice which automatically will increases the amount of your gift as well as your deduction. 

One rule to remember here is that the deduction is limited to 30% of your adjusted gross income (AGI). If you’re planning a large contribution that’s close to or exceeds these AGI limits, first talk with a tax professional.

Then file your taxes and claim your deduction once you have proof of the donation! 

How You Benefit

If you have stock that has grown in value, you can donate it and receive a charitable deduction for the current value as well as eliminate capital gains tax on the appreciation.

You’ll also save the cost and hassles of managing and maintaining the property. Compared with donating cash, or selling your appreciated securities and contributing the after-tax proceeds, you may be able to automatically increase your gift and your tax deduction.

Are You Eligible

You must have investments under your name that have gained value during 2018.

Qualified charitable contributions must be made by December 31 order to exclude that amount from taxable income.

Get Started

  1. Consult with your professional advisor about your financial situation.
  2. Transfer the investments of your choosing to the Foundation for the Diocese of El Paso.
  3. The capital gains then go directly to the Foundation for the Diocese of El Paso and are not subject to federal income tax.

Use Your Estate for Good

If you're creating or updating your estate plan and would like to include a future gift to the Foundation for the Diocese of El Paso for the charity, ministry, parish or school of your choice, contact Sofía Larkin at (915) 872-8412 or slarkin@elpasodiocese.org to learn how you can make a difference and help build God's kingdom with your gift.


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