How to Make a Gift of Appreciated Stock
- A step by step guide to making a gift of appreciated stock
How to Make an IRA Rollover Gift
- Benefits of Making an IRA Rollover Gift
- Sample letters to assist with making an IRA Rollover Gift
Did You Know?
City of Hope supporters like you can avoid some taxes while supporting lifesaving treatments and research. A variety of gifts can help reduce income, capital gains or estate taxes. Here are just two.
Charitable gifts of appreciated stock or mutual funds are a smart tax strategy. You’ll save on taxes two ways if you donate stock to City of Hope:
- Avoid capital gains and investment taxes.
- Enjoy a charitable income tax deduction.
Your gift can benefit you today and City of Hope patients for years to come.
Here’s an example >>
- Jane Smith wants to make a year-end gift to City of Hope and wants to do it as tax-efficiently as possible.
- Jane has stock she bought for $5,000 and it’s now worth $25,000. Because of her tax bracket, if she sells the stock, she would pay capital gains taxes.
- Instead of donating cash, Jane donates the stock directly to City of Hope and avoids the capital gains tax completely.
- Plus, Jane enjoys a charitable income tax deduction on the full market value of the stock – $25,000.
To qualify >>
- The gift must be an appreciated stock or mutual fund (you have owned the stock for at least a year).
- You must transfer the stock directly to City of Hope.
Charitable IRA Rollover gifts offer you many benefits:
- Use a portion of your Required Minimum Distribution to make a year-end gift to City of Hope and you don’t pay income taxes on the amount you donate.
- Receive a quick and easy estate tax reduction.
- Fulfill part or all of your required minimum distribution for this year.
- Reduce assets in your IRA account, up to a total of $100,000 each year or $200,000 for married couples
- Advance lifesaving research and patient care.
For example >>
- John Miller wants to make a gift to City of Hope.
- Now 71 years old, John must take a required minimum distribution from his IRA, which he would have to claim as income.
- John doesn’t need the additional income, so instead, he uses a portion of his Required Minimum Distribution to make a year-end gift directly to City of Hope and avoids paying income taxes on the donated amount.
To qualify >>
- You must be 70 ½ years old or older when you make the transfer to City of Hope.
- The donation portion of your Required Minimum Distribution must be transferred directly from your IRA to City of Hope.
- The gift cannot exceed $100,000 in 2016 for an individual or $200,000 for a married couple.
- Your transfer must be executed by December 31.
For assistance in making a Charitable IRA Rollover gift, please contact Thelma Villafuerte at 800-232-3314 or email@example.com. We would greatly appreciate being informed of your generosity so that we can be prepared to provide a proper and timely IRS acknowledgment.
“I wanted to do something for City of Hope and because I save on taxes, my IRA Rollover donation enables me to make a larger gift than I would otherwise be able to make.”
Leslie Bernstein, Ph.D., R.N., Professor,
Division of Cancer Etiology, City of Hope
The Wall Street Journal touted this method of giving, saying:
“While the taxpayer doesn’t get a deduction for the gift, neither does it count as income. This popular move can also help reduce a taxpayer’s adjusted gross income, which in turn can help minimize Medicare premiums or taxes on Social Security benefits.”