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Gifting Securities

Making Highly Appreciated Stocks Work for You
Do the tax consequences of selling your highly appreciated stock make you cringe? If so, you are not alone. If you regularly make a cash gift to Aloha’s Annual Fund, you could alternatively make your gift using shares of appreciated securities.

In 2012 you bought StockX at $100 per share. Today, StockX is worth $500 per share. If you sell, you will be taxed on the $400 earnings. If instead of writing your annual $1,000 check to Aloha, you directed two shares of StockX to Aloha, you would completely avoid paying tax on the earnings. You could then use the $1,000 cash you planned to donate to Aloha to purchase the stock again, resetting your basis.

The Benefit:

  • You have eliminated taxes on your highly appreciated stock by donating them to the Aloha Annual Fund (a qualified 501(c)3).
  • You’ve made your annual $1,000 gift to Aloha through an initial investment of only $200 (2 shares of StockX at cost of $100 per share).
  • Because you replaced the highly performing stock using the cash you would have used to make a donation, you have maintained the strength of your stock portfolio while decreasing your future tax liability on those shares.

To make your stock gift to support the Alohas, please advise us of any transfers by emailing Cheryl Olson at colson@alohafoundation.org with the type of stock and the number of shares being transferred. Then instruct your broker to make an electronic stock gift using the following delivery instructions:

DTC 0062, Account #: 34044702 Tax ID #: 03-6016791

Disclaimer: The ideas shared within this message are for informational purposes only and should not be taken as legal, financial, and/or tax advice. Donors should always consult a qualified financial planner, estate planning attorney, and/or tax advisor.