Gifts of appreciated stock, bonds or mutual funds are a smart and simple way to support Texas A&M University. These gifts allow you to give more with less because you may be able to take both an income tax deduction and avoid capital gains taxes.
You can even use appreciated securities to set up an annuity or unitrust to receive lifetime payments that equal or surpass current dividends. At Texas A&M, your gift can benefit any of these four impact areas:
- College Impact: Support a specific college, department or administrative unit.
- Faculty Impact: Create a faculty chair, professorship or fellowship.
- Spirit Impact: Benefit a part of Texas A&M that cultivates spirit such as student activities and organizations, traditions, special events or programs that take place outside the classroom.
- Student Impact: Support students—either undergraduates or graduates—through direct assistance in the form of a scholarship or graduate fellowship.
How It Works
You can make a gift of appreciated securities—publicly traded stocks, bonds and mutual fund shares—to the Texas A&M Foundation while avoiding capital gains taxes, diversifying your portfolio and/or securing a stream of income. It’s a simple and efficient way to give.
- You transfer appreciated securities to the Foundation.
- The Foundation sells the securities and uses the proceeds to support the future of Texas A&M.
How You Benefit
- You receive credit and an immediate income tax deduction for the fair market value (average high and low prices on the day of the transfer).
- You avoid capital gains taxes.
- You may fund a charitable gift annuity or a unitrust that diversifies your portfolio and allows you to receive lifetime payments that equal or surpass the dividends the securities are paying now.
Please note that the securities you use to make your gift must have been held by you for more than one year to be fully deductible.
More Information
When you donate appreciated securities, you can deduct the gift as a charitable donation AND avoid capital gains taxes at transfer, though some capital gains taxation may become part of the income stream if you choose to fund a gift that pays you income. This dual-benefit allows you to leverage a larger donation by using appreciated securities rather than cash to make your gift. Here's an example:
Assumptions: Donor in 33% income tax bracket; capital gains tax rate 15%
| |
$10,000 CASH |
$10,000 STOCK COST BASIS $5,000 |
$15,000 STOCK COST BASIS $7,500 |
| Charitable Deduction |
$10,000 |
$10,000 |
$15,000 |
| Tax Savings at 33% |
$3,300 |
$3,300 |
$4,950 |
| Capital Gains Tax Saved |
$0 |
$750 |
$1,125 |
| Net Cost of Gift |
$6,700 |
$5,950 |
$8,925 |
For instructions on how to complete a stock transfer, please contact Angela Throne, Gift Planning Operations Manager, at (979) 845-5638 or athrone@txamfoundation.com.
