Gifts of Publicly Traded Securities
Giving publicly traded shares of stock, bonds, or mutual funds to Carleton allows you to turn an appreciated asset into support for students and faculty.
You’ll receive a charitable income tax deduction for the fair market value of your gift, and as a qualified non-profit, Carleton can then sell the stock without having to pay capital gains tax. All the proceeds from the sale will be used for the charitable purposes you specify.
- You can designate your gift to the annual fund, start an endowed fund, or support a particular project.
- The real cost of your gift is reduced, since you’ll save on income and capital gains taxes by giving appreciated stock or mutual fund shares to Carleton.
- You can use your securities to make different types of gifts, including:
- An outright gift that gives you a charitable deduction for the fair market value of the property while potentially avoiding capital gains taxes.
- A gift that gives you income back and an immediate tax deduction, while leaving the assets to Carleton.
- A gift that gives Carleton income for a few years, then is passed on to your heirs at the time you specify, with considerable estate and gift tax savings.
Download more information about gifts of publicly traded securities.
Gifts of Closely Held Stock
If you own your own business, you may not hold much publicly traded stock because most of the stock you own is in your business. And if you’re like most entrepreneurs, the stock in your company has virtually no cost basis, making it subject to significant capital gains when you are ready to sell.
While potentially very tax-advantaged, gifts of closely held stock are not without their complexities and require thoughtful consideration on the part of all parties including: the shareholder, the company issuing the stock and Carleton.
- The real cost of your gift is reduced, since you’ll save on capital gains taxes and possibly also income taxes by giving appreciated stock to Carleton.
- You can use closely held stock to make a variety of different types of gifts, including:
- An outright gift that gives you a charitable deduction for the fair market value of the property while potentially avoiding capital gains taxes.
- A gift that gives you income and an immediate tax deduction, while leaving the assets to Carleton.
- A gift that gives Carleton income for a few years, then is passed on to your heirs at the time you specify with considerable estate and gift tax savings.
- You can designate your gift to the Annual Fund, start an endowed fund, or support a particular project.
- Your company may also benefit from your gift. Since there is often no resale market for these shares, Carleton may be willing to sell the shares back to your company. If your company uses either retained earnings or an employee stock option plan (ESOP) to redeem the shares, it may be able to reduce or avoid taxes.