Stock or Securities
Other than land, one of the least expensive ways to make a donation to the ICLT is through a gift of appreciated securities. This method takes advantage of tax rules that allow a donor to deduct from current income the full current value of donated securities.
If you bought or otherwise acquired securities many years ago, you may have a very low cost basis that would require the payment of significant capital gains taxes if you sold them. By donating these securities to the ICLT, you might be able to give even more than you thought possible. As the donor, you avoid paying capital gains tax on an appreciated security, and you receive a charitable deduction for the full fair market value of the stock when the gift is made, providing that you have held the stock for more than one year.
There is no Federal Alternative Minimum tax impact arising from gifts of appreciated securities. The stock must be saleable by the ICLT, but eligibility under Rule 144 is sufficient.
Every person’s tax situation is different. Your tax advisor can tell you how the actual numbers would work out in your case.