Benefits of Giving

Appreciated Securities

One of the best ways to make a gift to Tiferes — either through a Tiferes Fund contribution or a restricted gift — is to donate appreciated securities. In most cases, the out-of-pocket cost of your gift is reduced substantially due to the "double" tax benefit you realize when you contribute appreciated securities:

First, you are entitled to an income tax charitable deduction for the full fair market value of appreciated securities if they have been held for at least one year (or for your cost basis if they have been held for less than on year).

Second, you pay no capital gains tax on the transfer.

Example
Reuven '78 (5738) would like to make a $25,000 gift to Tiferes in honor of his 25 years in Lubavitch, but it would be difficult for him to make a cash gift of that magnitude. Reuven owns stock that has appreciated from his cost basis of $5,000 to its $25,000 current fair market value. On the advice of his tax advisor, he decides to use the appreciated stock to make a special gift to Tiferes. In doing so, Reuven essentially makes a $25,000 gift to the Yeshiva at an out-of-pocket cost to him of only $11,100.

The following table illustrates the numbers behind his decision to make a stock gift:

Reuven is delighted that the tax benefits of donating appreciated securities provide an opportunity for him to make this wonderful gift to Tiferes Menachem.

If you would like more information on gifts of stocks, bonds or mutual funds, please contact the office of the Yeshiva.

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