Tax Advantages of Giving Securities

You incur no capital gains tax. (That's your "extra" tax savings!)
Washington University incurs no capital gains tax when it sells the securities.
You can deduct the fair market value of the securities as of the date of your gift. (The income tax charitable deduction may be taken for up to 30 percent of your adjusted gross income, or up to 50 percent if you elect to limit the deduction to your basis on your tax return. Any unused deductions may be carried forward and used for as many as five additional years.)
Your charitable gift for transferred stock is the mean between the high and the low for the stock on the date of transfer.

With the tax-saving advantages achieved by donating appreciated securities, many alumni and friends find that they can be more generous to Washington University than they could be with an after-tax gift of cash.

Two Precautions:

For appreciated securities that you have held for less than one year and one day, only your cost basis is deductible.
It is usually more advantageous to sell stock that has decreased in value, claim the loss on your tax return, and contribute the cash proceeds.

Since January 1, 1998, charities have been able to be S corporation shareholders. This has opened new charitable planning opportunities for S corporation shareholders. For more information, contact the Office of Planned Giving at 1(800) 835-3503 or 314/935-5848.

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