Appreciated Securities: Important Reminders

Don't sell stock first

• Don’t sell the stock first and then give Children's Hospital the proceeds. Even though you are making a gift, the IRS will impose capital gains tax on your sale, eliminating a key tax benefit of this giving technique.

Don't contribute securities that have declined in value

• Don’t contribute securities that have declined in value. The fair-market deduction rule works against you: if you bought the stock for $50,000 and it’s now worth $30,000, your charitable deduction will be limited to $30,000. You won’t earn a capital loss by making the transfer to us, either.
  
  
• Instead, sell the depreciated stock, claim the resulting tax loss as one deduction, then make a deductible cash gift to Children's Hospital with the proceeds.