Giving More for Less
Gifts of appreciated securities are appealing because they reduce the cost of your gift by between 15% and 20%, depending on your tax bracket, and may reduce it by an additional 3.8% if you would normally be subject to the net investment income tax. For example, if you have $25,000 in securities with a basis of $5,000 and are in the 33% Federal Income Tax Bracket, you would most likely pay $3,000 in capital gains tax if you sold your securities, and may be required to pay an additional $760 in investment income tax, bringing your total tax bill to $3,760. By donating your securities to the Law School, you can avoid that $3,760 tax and make your full $25,000 gift.
How to Make a Gift
You may transfer securities directly to Harvard, and Harvard Management Company will provide you with the DTC instructions when you are ready to make a gift. Once your shares are in the University’s account, they may be sold tax-free and the proceeds are then distributed to the Law School.
ADVANTAGES OF APPRECIATED SECURITIES
– Avoid paying a capital gains tax.
– Receive a full fair market tax deduction for your gift.
– Increase the impact of your gift.