Gifts of stock
- You can avoid all capital gains tax due upon sale of the stock.
- You will also receive an income tax deduction for the full market value of your gift on the day you transfer it to North Star Fund.
- You make a gift to North Star Fund at an out of pocket cost significantly lower than the value of the gift.
Stocks, bonds, mutual funds, business interests are appreciated assets that you can give to North Star Fund
George bought XYZ stock when it was only $100/share. With XYZ stock now valued at $550, he can give the stock to North Star Fund, get an income tax deduction for the full $550/share market value, and avoid paying capital gains tax on the $450/share appreciation.
Sam is the owner of a successful family business partnership. He is a 50% partner with his two sons, and he would like eventually to transfer controlling ownership to them. He can give a share of the business to North Star Fund, receive a tax deduction for its value, and then his sons can purchase the share at some future date. He can even do this every year, eventually transferring full ownership.
Two important things to remember about gifts of stock
- If the stock is worth more than you paid for it, be sure to transfer the stock to North Star Fund first.
- If the stock has gone down since you bought it, sell it first to generate a tax-deductible loss, and then make a gift of the cash.
- Transfer stock or shares in a mutual fund to North Star Fund. For stock transfer instructions, please email cori parrish, Deputy Director of Programs and Operations, at email@example.com.
- North Star Fund will send you an acknowledgement and a receipt for your gift, based on the value of the shares on the date North Star Fund received them. (The deduction is based on the average of the high and low value of the stock on the day North Star received your stock.)
- You receive an income tax deduction for the full market value of your shares and avoid all the capital gains tax that you would have owed had you sold them.
If you would like to learn more about this kind of gift, or if you would like to see a confidential example designed specifically for you, please call 212-620-9110 or email Kofo Anifalaje, Development Officer, at Kofo@northstarfund.org.