A Tax-Smart Way to Support Erskine
Looking for a way to help Erskine students AND potentially receive tax benefits for yourself? Appreciated securities are a great way to do both. Below, we’ve put together an FAQ section for you.
If you have any questions, please reach out to our planned giving office via email at plannedgiving@erskine.edu or by phone at 864-379-8700.
- Instead of contributing by writing a check, you may give securities such as publicly traded stocks or mutual fund shares that have increased in value since they were purchased.
- Erskine will receive the securities and sell them, using the proceeds to support our mission.
- When securities are given directly to Erskine rather than sold by the donor, you can usually avoid recognizing the capital gain and corresponding income taxes that would otherwise result from the sale.
- Depending upon the donor’s circumstances and whether the donor itemizes charitable deductions on income tax returns, the donor may also qualify for a charitable income tax deduction based on the current value of the gift.
- Publicly traded stocks and mutual fund shares are frequently given.
- Erskine can also accept gifts of certain other assets. The College’s Advancement team is happy to discuss the specifics of these gifts with you or your financial advisor.
- Usually, no.
- Donors considering the capital gains benefits of this strategy should explore transferring the appreciated securities directly to the College rather than selling them first. Selling the securities personally may trigger capital gains taxes and eliminate one of the primary potential tax advantages of making the gift with appreciated assets.
- Mary bought stock years ago for $20,000. Today that stock is worth $50,000.
- If Mary sells her stock, she may owe capital gains taxes on the $30,000 increase in value.
- If Mary instead gives the stock directly to Erskine, she usually avoids recognizing the $30,000 capital gain and may qualify for a charitable deduction of the $50,000 gift value.
- Erskine receives the benefit of the full value — $50,000 — of the securities Mary gave.
- If your securities are held in a brokerage account, please contact our Advancement team so that we can provide transfer information that your broker’s staff will need to initiate the transaction on your behalf.
- If your shares are held in a mutual fund account, Dividend Reinvestment Program, or in paper certificates, please contact our Advancement team to discuss the specifics of your situation.
- Notifying Erskine of your giving plans in advance is always helpful so we can make preparations for receiving your gift.
Because tax rules can change and individual circumstances vary, we encourage you to consult your financial or tax advisor to discuss the strategies best suited for your situation.