Securities/Stock Gifts

Securities are among the most popular assets used to make gifts. Securities include publicly traded stocks, mutual funds, Treasury notes, and closely held stock. Gifts of closely held stock must first be reviewed and accepted by the University. There can be significant tax advantages for donors choosing to transfer highly appreciated (long-term) securities to the University as a charitable gift. The value of your gift depends upon the market price of your assets when they are given.

Benefits of Making Gifts of Appreciated Securities

• You avoid capital gains tax. Any gain is taxable if you sell stock or mutual fund shares yourself, but it is not taxable if you transfer ownership to the university.
• Your charitable deduction for federal income tax purposes is based on the marketable securities' value. Marketable securities' value is based upon the average of the high and low quoted selling prices on the date the donor relinquishes control of the assets in favor of the University.
• You receive gift credit for the market value of the shares, but the cost to you is only your original purchase price.

For more information on making a gift of stocks or bonds, please contact any development officer or email us at developmentoffice@txstate.edu. As with any decision involving your assets, we urge you to seek the advice of your professional counsel when considering a gift to Texas State University.