Gifts of Stocks

Despite the volatility of the stock market, stocks remain popular as gifts to the Clark School. Stocks often represent the best value if you want to make a substantial gift yet keep cash flow intact.  Stocks bought at a substantially reduced cost may increase the value of your gift over time, as well as provide added tax advantages. There are no hard and fast rules for selecting a stock as a gift; the best choices will depend on the overall makeup of your portfolio. Here are a few general points to consider:

• Stocks with appreciated value will give you the maximum leverage for an untaxed profit.
• By giving stocks in which you may have an over-weighted position in your portfolio, you may receive valuable tax relief while lightening your position.
• Stocks with potential for increased value as charitable gifts now may allow you important tax savings if you consider your future capital gains tax liability.

Income Potential Through Gifts of Stock
Stocks may be used to structure gifts that will yield a direct income stream for you or for someone you designate. These life income plans may generate substantial tax benefits in the year they are set up, while providing income for the donor for life or a designated term of years.

For example, using stock to fund a life income plan may help you minimize or avoid capital gains tax when the university converts the stock on your behalf. The undiluted proceeds can be used to generate a high income stream for your lifetime or for a designated term of years. In addition, you receive a substantial income tax charitable deduction, which further improves your cash flow.

Another benefit may be to restore balance in your portfolio. Selling off stock can incur a large and unwanted capital gains tax. You may avoid this tax by using the stock to fund a life income plan, while re-balancing your portfolio.

Please contact your financial and tax professional to further discuss which option best suits your needs.

For a confidential discussion about giving gifts of stock, please send e-mail to or call one of our development staff.