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Richard Bray Gifts of stock and securities are one of the most attractive ways for you to leave a personal legacy. For many people, their portfolio of stock, bonds, and similar investments is the largest asset they own. As you do your estate planning, consider how gifts of stock can help you achieve the following objectives:

Your mission

You are put on this earth to make a difference. Some cause is uniquely yours to help champion. As you reflect on your life, what issues have you been most passionate about? Caring for the poor and vulnerable? Fostering spirituality or education? Supporting environmental or cultural projects? Gifts of stock and securities can help you leave a meaningful legacy to further the important mission that you are called to do.

Make an impact now

Do you want to enjoy the impact of your potential stock gift now? Would you like to experience the advancement of your cause during your lifetime? Would a charitable tax deduction help you for this year? If so, consider gifts of stock and securities while you are alive and watch firsthand as your vision unfolds.

Leave a legacy later

An important part of your estate plan and other long-term financial planning is making sure you and your loved ones will have adequate finances, most especially in retirement years.

Many people want to make a special gift to a favorite charity, but are concerned about their financial well-being. Consequently, they will give gifts of stocks through their will or trust. This enables them to leave a legacy and make sure that funds are available for a spouse or other family members.

Reducing taxes

Gifts of appreciated stock or securities are a smart way for you to give. As you give these kinds of gifts you receive not one -- but two -- tax benefits. First, you save capital gains tax. If you sold your appreciated stock, held for more than a year, your stock would loose 15 percent of its current market value, because of capital gains tax. Here’s a better way. You donate your stock directly to charity, resulting in the full market value (100 percent) going to the organization. The charity doesn’t have to pay income tax on your donation.

The second tax benefit resulting from your gift of stock is that you receive a charitable deduction. Your gift is deductible and can help you save on this year’s taxes. IRS charitable deduction rules allow you to deduct your stock gift amount up to 30 percent of your adjusted gross income in the year you make a donation. If your gift is larger than that, you have up to five additional years, if needed, to deduct any remaining balance.

How a stock donation works

Joe and Sue Smith feel passionately that children should not go hungry in their community. They want to support a program that helps provide nutritious food to low-income families. They bought stock years ago at $20,000. Today, the stock is worth $50,000 and they would like to make what would be a major gift for them. If they sell their stock, they will pay a 15 percent capital gains tax on the $30,000 of appreciation enjoyed since their original purchase. The capital gains tax would be $4500 (15 percent tax on $30,000 stock appreciation).

The Smiths love their country, but think the $4,500 could be put to better use. After talking with their favorite charity serving needy children, they learn that if they transfer the stock to the charity, without selling it themselves, the full $50,000 of their stock would be available to provide the food assistance to children that they want to support. In addition, they are thrilled to learn that the full $50,000 is deductible, as they itemize their taxes.

You receive many benefits from charitable donations of stocks and securities. The timing of your donation is up to you. Contact your favorite organization and ask to speak to the gift-planning representative to discuss your wishes. You have a mission and we want to help you leave your legacy and financial goals.

Richard Bray is director of donor and community relations for the Society of St. Vincent de Paul of Seattle/king County. He can be reached at 206-957-7241 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it or www.svdpseattle.org.