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Using securities to make a gift provides flexibility that may make giving easier and more to your advantage.
- A gift of marketable low-yield securities has little or no impact on your current income.
- Financial securities can be used to fund both outright and deferred gifts.
- Fordham gives you gift credit for the full current value of the gift.
When you make a gift of long-term appreciated securities, you maximize the gift to Fordham and your tax advantages at the same time. If you have any questions about gifts of securities, please contact Fordham's Office of Gift Planning via e-mail at giftplanning@fordham.edu or by phone at (212) 636-7957.
When making a gift of long-term appreciated securities, be sure to transfer ownership of the securities to Fordham and not sell the securities on your own. This protects you from the capital gains tax on any appreciation.
For example, if you were to sell long-term appreciated securities, you would be liable for the federal capital gains tax, currently as much as 15% of the difference between the current value of the security and your cost (and possibly state capital gains tax as well). However, by transferring ownership of long-term appreciated securities to Fordham, you avoid capital gains tax on the appreciation. (On outright gifts of securities, you will owe no capital gains tax whatever. With Life Income Gifts, part of your income payments may be taxed at capital gains rates).
When you transfer long-term appreciated securities to Fordham, you receive credit for the full current value of the gift.
For outright gifts, you receive a current income tax charitable deduction of 100% of the current value of the gift, subject to certain limitations, assuming you have held the securities for at least one year and a day. For deferred gifts, the deduction is the present value of the future gift, calculated according to IRS formulas.
Securities can be transferred to Fordham three ways: electronically, by mail, and by re-registration in Fordham's name. Your date of gift is the date of transfer: the date your broker transfers shares, the date you mail certificates, or the date re-registration is complete on the corporation's books. Read the following section for more specifics.
Reminder to donors: the IRS may require you to complete form 8283A for a gift of securities. Please consult your tax advisor regarding your personal situation.
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