Gifts of securities or other real property provide immediate support to the School. Donors receive tax deductions based on the fair market value of the property at the time of the gift and avoid capital gains tax on appreciated property. Click here to obtain our Stock Transfer Instructions and Letter of Authorization form to initiate your gift of stock.
If part of your long-term financial planning includes investing in stock, there's a win/win opportunity right within your reach. If making a gift of a long-term (owned for more than one year) capital gain property is given to a qualified charitable organization like De La Salle, the gift is deductible for its full fair market value; as a result, there is no capital gains tax payable on the appreciation in value. If you were to "cash out" of the investment and realize the investment gains and then make a gift, the tax consequences and cost to you would be significantly higher.
How to make a stock gift
Please contact your broker with transfer instructions (see below) and then notify De La Salle High School (Mark Chiarucci at email@example.com) that a transfer will be made. Complete the Letter of Authorization and submit a copy to your broker and to De La Salle High School.
Please instruct your broker to use the following information for transfer purposes. De La Salle High School’s account is held with Morgan Stanley. Transfer of ownership is managed electronically between your broker and the School’s broker, Morgan Stanley.
For your tax purposes, you will receive an acknowledgment letter via mail once De La Salle High School has received notice of the transfer and sale of the donated securities. We will provide you with the date the shares were received, the high and low of the day, as well as the date the shares were sold and their value when sold.
Should you have any questions, please contact Vice President for Advancement, Mark Chiarucci at (925) 288-8106 or firstname.lastname@example.org.
Example of Gift of Securities
In our example below, the donor's goal is to make a $25,000 gift to De La Salle High School. The individual has a federal income tax rate of 28% and is not subject to state or local income taxes. The donor's cost basis for the stock purchase is $10,000.
When a gift of long-term (owned for more than one year) capital gain property is given to a qualified charitable organization like De La Salle, the gift is deductible for its full fair market value; as a result, there are no capital gains tax payable on the appreciation in value.
In our example, making a gift of stock instead of cash saves an added $2,250. A higher federal income tax bracket and any state or local income taxes would improve this tax-deductible benefit.
|Gift amount - cash
|Gift of stock
|Income tax rate
|Tax savings from deduction
|Capital gains if sold
|Net cost of cash gift
|Capital gains tax rate
|Capital gains tax avoided
|Tax savings, same as above
|Net cost of stock gift