Appreciated securities
Giving appreciated securities is a fast and easy way to make a gift
to MIT while deriving considerable tax benefits. And it is almost always
a better strategy to give appreciated securities directly to the Institute,
rather than selling them and donating the proceeds of the sale. In fact,
many alumni find that the tax benefits associated with giving appreciated
securities to MIT actually allow them to increase the size of their gift.
Instructions for giving appreciated securities:
In addition to helping MIT, a planned
gift of appreciated
securities can create exciting opportunities for you. For example, it
may create a lifelong income stream that exceeds what you would otherwise
have received in dividends. Many donors use securities to establish a
stand-alone planned gift, such as a charitable
remainder trust.
Securities that have lost value are not usually considered for gift
purposes. If you want to take your losses and invest the proceeds in
a guaranteed success, however, you can sell the stock, take the capital
loss deduction, and make a gift to MIT.
Questions about stock gifts to MIT can be directed to the Office of
the Recording Secretary, at 617.253.5052 or stock-gifts@mit.edu.
Or contact us.
Case study: Making a gift of appreciated securities
John and Cathy Crawford hold 1,000 shares of a stock they purchased
five years ago at $12 per share, for a total investment of $12,000. Today
it is worth $50 per share, or $50,000. The Crawfords decide to gift these
securities to MIT, to honor faculty members who taught Cathy Crawford
as an undergraduate here.
With this gift of appreciated securities, the Crawfords have—
- made a gift of $50,000 to support faculty at MIT;
- qualified to receive an immediate $50,000 federal charitable income
tax deduction;
- avoided a $7,600 federal capital gains tax; and
- excluded $50,000 from their taxable estate.
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