Appreciated Securities

Using appreciated securities can enhance your giving to Kanuga

The IRS still allows a notable tax break for persons considering a charitable gift. Donors may deduct the full, fair market value of appreciated assets given to Kanuga, with no recognition of capital gains. That means donors can leverage a large donation and charitable deduction using an asset with a small cost basis.

How it works

Jane, a friend of Kanuga, holds publicly traded stock with a fair market value of $10,000, which she bought seven years ago for $5,000. If she transfers the stock to Kanuga as a charitable contribution, she will be able to claim a charitable income tax deduction for the full $10,000.

In addition, upon the transfer of her stock, she will not be liable for tax on the $5,000 capital gains. By using stock instead of cash, Jane has delivered a gift of $10,000 to Kanuga and secured a tax deduction in the same amount, at a cost to her of only $5,000.

Details about making a gift of appreciated securities

Don't sell the stock first and then give Kanuga the proceeds. Even though you intend to make a charitable gift, the IRS will impose capital gains tax on your sale, wiping out the benefit of giving appreciated securities.

To transfer securities to Kanuga, have your broker contact Randy Boone, Kanuga’s director of development (828-692-0077, ext. 240, or ) to arrange the transfer to Kanuga's account. Your charitable deduction will be valued as of the date the securities reach Kanuga’s account.

Donors may deduct gifts of appreciated assets up to 30 percent of their adjusted gross income (the total of their taxable income). For example, a donor whose adjusted gross income will be $100,000 this year will be able to deduct up to $30,000 in gifts of stock.

The benefit of a gift in excess of the 30 percent amount is not wasted, though. The IRS allows donors to carry forward excess deductions through five tax years following the year of the gift.


For information and assistance with any form of giving to Kanuga, please contact Randy Boone, Kanuga’s director of development, at 828-692-0077, ext. 240, or . Persons considering a sizeable donation to Kanuga or interested in providing for Kanuga in their estate plan should seek the advice of a financial advisor and/or attorney.