Gifts of Stock: Benefits and Instructions

When you have appreciated securities:

If you have appreciated stocks, bonds, or mutual fund shares you have owned for more than one year, donating them to Gettysburg College can be a more affordable way to make your most generous gift. Your charitable deduction is based on the full market value of the shares on the date donated, and, with an outright gift, you pay no tax on the capital gain.

Here is an example of how donating appreciated securities can help leverage your support, based on a donor in the 28% tax bracket and a capital gains rate of 15%:

$10,000 Cash $10,000 Stock
Cost Basis $5,000
$20,000 Stock
Cost Basis $10,000
Charitable Deduction $10,000 $10,000 $20,000
Tax Savings @ 28% $2,800 $2,800 $5,600
Capital Gains Tax Saved $0 $750 $1,500
Net Cost of Gift $7,200 $6,450 $12,900

Imagined another way,

  • Joe and Amy ’96 want to join the Cupola Society with a gift of $2,500
  • Their shares of XYZ stock, purchased for $1,820 have appreciated to $2500
  • They transfer the shares to Gettysburg College, receiving gift credit for the market value
  • Joe and Amy qualify for an immediate income tax deduction of $2,500 AND the out-of-pocket cost to them was only $1,820. Plus, they pay no tax on the capital gain.

To make outright gifts of publicly traded stock, please follow these steps:

  1. Contact a member of the development office (1-800-238-5528) to let them know you are making a gift and which broker you are using, which minimizes delays in processing your gift.
  2. Contact your broker with the details of the securities you wish to transfer, along with contact information for one of these trusted brokers:

Morgan Stanley
c/o Dale Beshore ’10
214 Senate Avenue, 7th Floor
Camp Hill, PA 17011
717-255-6650
866-588-4612
Account Number: 341-034801-158
Deposit Trust Company: #0015

Merrill Lynch
c/o David Haight
14 Exchange Place
Jersey City, NJ 07302
201-946-4014
800-778-9935
Fax: 973-607-4647
Account Number:  82B02229
Deposit Trust Company: #8862

Charles Schwab
c/o Ryan Claar
22A North 2nd Street
Harrisburg, PA 17101
717-257-3936
800-435-4000
Account Number: HG36421756
Deposit Trust Company: #0164

If you wish to contribute mutual fund shares, private stock, or other appreciated securities, please contact Emily Clarke, Manager of Planned Giving, at 800-238-5528 / 717-337-6478 / eclarke@gettysburg.edu.

To establish a life-income gift

Appreciated securities can also fund a gift that pays you or others income, such as a charitable gift annuity or a charitable remainder unitrust.

Example:

  • John and Sarah, both 66, are seeking supplemental income in their retirement. They also want to make a gift to celebrate their 45th reunion.
  • They decide to donate appreciated stock valued at $50,000, which they purchased for $30,000 ten years ago.
  • They sign a simple agreement with Gettysburg College, which promises to pay 4.3% income every year for the rest of their lives. This $2,150 annuity is partially tax-free income.
  • John and Sarah pay no capital gain tax in the year of the gift, spreading the reportable gain out over their joint life expectancy, as part of their annuity is taxed at the capital gain rate.
  • They qualify for an income tax deduction based on the charitable portion of their gift annuity.

Securities donated to fund charitable gift annuities and charitable remainder trusts should be sent directly to the administrator of our life-income gift program. For instructions, please contact Emily Clarke, Manager of Planned Giving, at 800-238-5528 / 717-337-6478 / eclarke@gettysburg.edu.