SECURITIES

Make a Gift of Appreciated Securities

The SSMO Foundation gladly accepts publicly traded securities including:

• Stock
• Mutual funds and
• Bonds

It’s advantageous to give appreciated property because you receive a tax deduction for the current value of the securities and you can avoid the capital gains tax on the appreciation of your securities.

To qualify for this double tax benefit, you must have owned the property for more than one year. If your gift is a piece of personal property (i.e., artwork, automobile, equipment), your gift must be related to the mission of the Sisters of St. Mary of Oregon in order for you to claim a deduction for the full value of the property.

EXAMPLE: Jeanette has owned 100 shares of IBM for fifteen years. She
purchased the shares for $30 each ($3,000 total). Now they are valued
at $80 each ($8,000 total). If she were to sell the shares herself, she would
receive $8,000 minus commissions and then pay $750 in capital gains taxes (15% tax on $5,000 gain).

But if Jeanette transferred the IBM shares to the SSMO Foundation, she would receive an income tax deduction of $8,000. Because Jeanette is in the 25% federal income tax bracket, the gift will save her $2,000 in federal taxes (25% of $8,000 is $2,000). Plus, she will NOT have to pay the $750 in capital gains taxes because the SSMO Foundation sold the shares. So in total, Jeanette will save $2,750 in federal taxes ($2,000 plus $750) and the true cost of her $8,000 gift is $5,250 ($8,000 minus $2,750 tax savings).

Melissa Maxwell
Development Director
503-906-1139