Securities and mutual funds that have increased in value and been held for more than one year are popular assets to use when making a gift to the University of Maryland. A gift of securities or mutual funds offers you the chance to support the university while realizing important benefits for yourself.
When you donate appreciated securities or mutual funds in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.
From a tax perspective, donating appreciated securities is better than giving cash. If you are hesitant to give appreciated stock because you believe the value will continue to grow, you could donate the stock and then use the cash you would have donated to repurchase the stock, thereby getting a stepped-up basis.
Securities are most often given in the following two ways:
An outright gift. When you donate securities to Maryland, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.
A transfer on death (TOD) account.* By placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime.
Additional ways to fund your gift:
- A gift in your will or living trust.
- A donor advised fund.
- A memorial gift.
- An endowed gift.
- A charitable gift annuity.
- A charitable remainder trust.
- A charitable lead trust.
*State laws govern transfer on death accounts. Please consult with your bank representative or investment advisor if you are considering this gift.
