Gifts of Securities

Growing Stock, Growing Generosity #

If you own stock that’s increased in value since you purchased it (and you’ve owned it for at least one year), you have a unique opportunity for philanthropy. When you donate securities to the IU School of Social Work, you receive the same income tax savings (if you itemize) that you would if you wrote us a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20 percent.

Making a gift of securities to support our students is as easy as instructing your broker to transfer the shares or, if you have the physical securities, hand-delivering or mailing the certificates along with a stock power to the School of Social Work in separate envelopes. (Tip: Using separate envelopes protects your gift— the certificates will not be negotiable without the stock power.)

How a Gift of Stock Works #

$25,000 today’s stock value

$10,000 stock purchase price

Selling the stocks:

$2,250: Capital gains tax owed if sold ($15,000 X .15 capital gains tax rate)

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Donating the stocks to The IU School of Social Work:

$25,000: Income tax charitable deduction

$0: Capital gains tax

Using assets other than cash also allows you more flexibility when planning your gift, and there are even more potential benefits if you plan your gift creatively. For example, if you aren’t ready to give up these assets during your lifetime, a gift of securities through your will or living trust allows you the flexibility to change your mind at any time. You can continue to receive dividends and participate in shareholder votes, and the securities are still yours if you need them for other expenses.

Through creative gift planning, you can secure your own financial future and help support students and faculty. We can work with your advisors to help you plan for tomorrow and receive maximum benefits today.

Take the Next Step #

We can help clarify and document the steps to donate stock to the IU School of Social Work. Simply contact Sandy Noe at (317) 278-1620 or smnoe@iu.edu to see how this gift can be win-win.

Disclosure #

The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.