The Savvy Donor Gives Stock
One way to lock in gains for your individual stock portfolio is to make a charitable gift of appreciated stock.
You win in three ways.
First, as with a cash gift, the charitable donation is tax-deductible. Second, you avoid paying capital gains taxes on the appreciated asset. And third, you contribute to your personal “double bottom line,” by giving back to the community via your designated charity. A gift to the George Mason University School of Management can achieve all of these objectives.
Marc Mantelli, director of Private Client Services for Ryan Sharkey, recommends that donors consult their broker to determine which specific holdings to use for this purpose. Equities held for more than 12 months or those with the lowest cost basis are often good candidates to be culled from a portfolio to make a charitable gift. Depending on your individual situation, though, there may be better candidates. Consult your broker or financial planner to help you identify these gems. Most nonprofits, including Mason's School of Management, can provide you with an easy form to initiate the transaction.