Donating appreciated securities directly to AKF USA—rather than selling the assets and donating the cash proceeds—is one of the best ways to give during your lifetime.
Donating stocks and other securities is one of the most tax-efficient ways to give
A charitable contribution of appreciated securities—such as stocks, bonds, and/or mutual funds that have realized significant appreciation over time—is one of the most tax-efficient ways to give.
This method of giving has become increasingly popular in recent years because of two key advantages:
- Any appreciated securities with unrealized gains (meaning they have a current value greater than their original cost) may be donated to a public charity and a tax deduction may be taken for the full fair market value of the securities—up to 30% of the donor’s adjusted gross income.
- Since the securities are donated rather than sold, capital gains taxes from selling the securities no longer apply. The more appreciation the securities have, the greater the tax savings will be.
Donating Appreciated Securities: A Win-Win for Donors and AKF USA Alike
The table below illustrates potential tax savings for a donor making a direct donation of a long-term appreciated security—with cost basis of $20,000, and long-term capital gains of $30,000—to AKF USA.
Donate Stock: Contribute securities directly to AKF USA
Donate Cash: Sell securities and donate proceeds
|Current fair market value of securities||$50,000||$50,000|
|Capital gains and Medicare surtax paid (23.8%)||-$0||-$7,140|
|Charitable contribution/charitable deduction||$50,000||$42,860|
|Value of Charitable Deduction less Capital Gain Taxes paid (assumes donor is in the 39.6% federal income tax bracket)|| |
Inform AKF USA
If you are looking to maximize the power of your charitable contributions—to make a single asset make more of a difference in AKF USA’s work, consider donating your long-term appreciated securities.
For more information on how to donate appreciated securities, please contact your local AKF USA volunteer or call 202.293.2537, email [email protected], or mail to:
Planned and Legacy Giving
Aga Khan Foundation USA
1825 K Street, NW Suite 901
Washington, DC 20006
The content on our Planned and Legacy Giving pages is for informational purposes only. We recommend that you consult with your financial and legal advisors for additional information and guidance.