Securities and Annuities
Securities
Donating publicly traded securities and mutual funds not only has an impact on the lives of military families and Veterans, but it allows you to amplify your impact. By donating securities you receive a double tax benefit – you eliminate the capital gains tax that is payable on selling appreciated securities, and you receive a charitable tax receipt for your donation. A gift of securities benefits you more than giving cash, and allows you to make a larger gift.
Please review and complete the Securities Donation Form to initiate a transfer of shares.
There are a few key elements to making a successful gift of marketable securities.
- The gift must be of “qualified” appreciated securities (including shares, mutual fund shares, segregated fund shares, bonds, warrants), and options listed on a prescribed stock exchange.
- The donor must transfer the securities to True Patriot Love Foundation in kind without selling them. If the donor sells the securities before transferring, standard capital gains tax rules apply to the disposition (50% of the gain rather than 0%).
- Shares can be transferred with directions in writing and there is no limit on maximum or minimum share value.
The following example illustrates the tax saving for a gift of shares compared to a gift of cash.
| Gift of Shares | Gift of cash after Shares are Sold | |
| Today’s Selling Price | $30,000 | $30,000 |
| Original Price | $10,000 | $10,000 |
| Capital Gain | $20,000
($30,000 current price minus $10,000 purchase price) |
$20,000
($30,000 current price minus $10,000 purchase price) |
| Taxable Capital Gain Included in Income | $0
(0% when shares are donated) |
$10,000
(50% when shares are sold) |
| Tax on Capital Gain | $0 | $5,000 |
| Tax Savings from Gift of Shares | $5,000 | $0 |
| Tax Benefit from Donation
($30,000 X 50%*) |
$15,000 | $15,000 |
| TOTAL TAX SAVINGS | $20,000 | $15,000 |
The proposed legislative changes (currently under consultations) to the Alternative Minimum Tax (AMT), when passed into law, will become effective retroactively to January 1, 2024 and might impact the effect of tax benefit obtained from the gifts.
Next steps
1. Contact your financial advisor to decide which investments make the most financial and philanthropic impact.
2. Ask your broker to transfer your securities to True Patriot Love Foundation using the Securities Donation Form
3. True Patriot Love will sell the stock and receive the current value.
4. You will receive a tax receipt for the full closing value of the stock on the day True Patriot Love’s brokers receive them without having to pay any capital gain.
Please contact your financial advisor or Meighan Bell at mbell@truepatriotlove.com prior to your planned transfer of shares, to discuss the shares being considered.
Charitable Gift Annuities
When you purchase a Charitable Gift Annuity, you receive tax-free income, while immediately supporting military families There are multiple ways to make a gift to True Patriot Love Foundation including: Endowments, Charitable Remainder Trusts, Gifts of Property and other Gifts-In-Kind. You should always consult your financial and legal advisers before making a gift of securities or charitable annuities.
Disclaimer: This information is general in nature and does not constitute legal or financial advice. True Patriot Love Foundation recommends that before making any gift of securities of any size, a donor consults with his/her professional financial advisor(s) for the tax, financial and/or estate planning implications. Individual circumstances differ and you are strongly encouraged to discuss with your own financial counsel to ensure your gift decisions are appropriate to your situation.