Donating appreciated securities often allows donors to make a bigger philanthropic impact and enjoy greater tax advantages than donating cash or selling the stock and donating the proceeds.
Silicon Valley Community Foundation offers expertise in even the most complicated charitable transactions, from publicly traded securities to shares in S corps or privately held securities.
By donating appreciated securities, you bypass capital gains tax and may deduct the fair market value of your gift. Stock donations may be made to the Community Endowment Fund, a donor advised fund or any other type of fund at the foundation. They may also be used to create a charitable remainder trust or other planned gift.
Deductions for Publicly Traded Securities
For publicly traded securities held for more than one year, the deduction is the mean of the high and low prices reported on the date the contribution is received by Silicon Valley Community Foundation. For mutual fund shares held for more than one year, the deduction is the closing price on the date the contribution is received. For securities or mutual fund shares held for one year or less, the deduction is the lesser of the cost basis or fair market value.
Deductions for Privately Held Securities
For securities that are not publicly traded and held for more than one year, the deduction is the fair market value on the date the contribution is made to Silicon Valley Community Foundation. To that end, the donor will be required to provide the IRS with a qualified appraisal for any contributed property for which the donor will claim a deduction of more than $5,000. For securities held for one year or less, the deduction is the lesser of the cost basis or fair market value.