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Vol. 4 Issue 3


Gifts of publicly traded stocks, bonds, or mutual fund shares can yield a wealth of potential benefits for you and ASHRAE Foundation. With this type of gift you can:

  • Eliminate capital gains taxes on the securities you donate—if you've held them for more than one year.
  • Receive a federal income tax charitable deduction based on the current fair market value of the securities on the date of the gift, depending on your tax situation.
  • Provide valuable support to ASHRAE Foundation's mission to advance the HVAC profession.


Appreciated securities are among the most versatile and economical assets to donate. The chart below shows how the way you make your donation can affect your potential benefits and gift amount. (The example assumes you are in a 28 percent federal income tax bracket.)


$25,000 Given Three Ways


Suppose a donor makes a gift of $25,000 to benefit ASHRAE Foundation. The donor would receive an income tax charitable deduction of $25,000. If the donor is in the 28% tax bracket, the gift of $25,000 cash will save $7,000 in income taxes so the gift costs the donor $18,000 to make.


What would happen if a donor were to sell stock worth $25,000 and a cost basis of $5,000 in order to make a gift to ASHRAE? There would be $20,000 of long-term capital gain tax realized on the sale of the stock. Assuming a 15% capital gain tax rate there would be $3,000 in capital gain tax due. The donor would still get the tax savings from the deduction of $7,000 so the net cost of this gift is $21,000.


But what happens if the donor transfers stock worth $25,000 with a $5,000 cost basis directly to ASHRAE? The donor avoids $3,000 in capital gain tax and saves $7,000 in income tax from the deduction. The total tax savings is $10,000 and the gift of $25,000 only costs the donor $15,000 to make.


Clearly the gift of appreciated property is the most tax efficient way to make this gift.


Things to Remember


  • The income tax deduction for appreciated securities you've held for more than one year is limited to 30 percent of your adjusted gross income in the year you make the gift, but your excess deduction is deductible for up to five additional years.
  • Your securities will be valued on the date they become ASHRAE's property. The value of your gift is the average of the high and low selling prices on the date they are credited to ASHRAE's account.

If you would like more information about how you can make a gift of appreciated property to ASHRAE Foundation or more about other planning ideas, contact Margaret Smith at, tel: 678-539-1201.


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