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If you are planning to make a relatively substantial donation this year to the Coos Bay Public Library Foundation, look through your portfolio before you write a check.  Donating appreciated securities, such as stock or mutual funds, to the Foundation can be a tax-wise approach.

Advantages of Donating Stocks & Mutual Funds

Donors often choose to make gifts to the Coos Bay Public Library Foundation using long-term appreciated stocks, bonds and mutual funds due to the attractive and valuable advantages associated with such gifts which may include:

  • Avoiding federal and state tax on the capital gain;
  • Receiving an income tax deduction (federal and state) for the full market value of the gift upon transfer if you itemize deductions on your tax return and have held the assets one year or longer;
  • Making a larger gift at a lower original cost to you.

Important Facts to Remember 

You must itemize your tax return in order to claim a charitable deduction.

You must have owned the securities for at least one year before donating them or you will be limited to a deduction of your original purchase cost of the securities.

You may take a deduction valued up to 30 percent of your adjusted gross income. If the deduction is greater than 30 percent, you may carry any unused deduction forward for up to five years into the future until it has been fully used.

Shares that have gone down in value since being purchased generally should not be donated, because a gift of such an investment does not cause the potential capital loss to be realized for tax purposes.  Instead, you should sell the shares to realize the loss and then give the cash from the sale.

We encourage you to consult your financial planner or tax advisor who can assist you in evaluating the advantages available to you when making a donation of appreciated securities.