Appreciated Securities: Complete Description

Give appreciated securities to Children's Hospital Oakland and you shall receive -- a tax break. Whether it's 100 shares of blue-chip stock or a new high-tech gadget, our government does indeed allow you to deduct these gifts as charitable donations. Moreover, you also avoid capital gains tax on the transfer.

This double benefit means that you can leverage a larger donation by using appreciated securities rather than cash to make your gift.

We welcome gifts of publicly traded stocks, stock in closely held corporations, bonds, and mutual fund shares. The securities you use to make your gift must have been held by you for more than one year to be fully deductible.

Securities fluctuate in price - how will my gift be valued?

We take the average of the high and low prices for the security on the date of its transfer to us. If the high bid was $80 and the low was $70 on the day you made your gift, your gift will be $75 per share.

If the stock you donate is held by your broker, the gift date is the day the stock reaches our account. If you hold the certificates yourself and mail them to us, the gift date is the postmark date on the envelope.

Donors of mutual fund shares use the fund’s net asset value on the day the shares reach our account.

Is it difficult to transfer securities?

Not at all, and we can help you through every step of the process. Email or call us for assistance.

Creative plans for securities gifts

Use your gift of appreciated securities to fund a life-income gift at Children's Hospital like a charitable gift annuity or a unitrust. Pay no upfront capital gains tax on the transfer, and receive lifetime payments from your gift plan that equal or surpass the dividends the securities are paying now. The result? You make a gift to Children's Hospital while diversifying your portfolio and securing a stream of income.