Donating Appreciated Securities

Do you have appreciated securities in non-IRA investment accounts?

Consider donating securities to Friends of the Oakhurst Branch Library (FOBL) instead of cash.


By donating securities—like stocks or mutual funds—that have appreciated for more than a year, you are actually giving 20 percent more than if you sold the stock and then made a cash donation. The reason is simple: avoiding capital gains taxes. The maximum federal capital gains tax rate is 20 percent on long-term holdings. But if you donate the stock directly to a charity, there’s no capital gains tax to pay.


Plus, you are still eligible to deduct the full fair-market value of the asset you donated from your income taxes, up to the overall amount allowed by the IRS.


Since FOBL is a non-profit 501(c)(3), no taxes are paid and all proceeds from the donated securities will go toward worthy library projects and improvements.


Check with your CPA or tax preparer regarding this unique way of giving and how it may benefit you.


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