Stock, a Smart Way to Give

Monica '97 and Wade '96 Gray met at MVNU. Both sang in the MVNU choir, The Collegians, as has their son, Lucas '27. Timothy '25 is also an alumnus.

Monica and Wade say, "We are happy to partner with MVNU because of the impact numerous faculty and staff have had on our family.  We decided to give stock first because it helps us give more. 

"Giving stock directly to MVNU allows the full amount to be used for its intended purpose.  If we were to sell stock and then donate the proceeds, either the school's gift or our finances would be reduced because of taxes on the stock sale. 

"Also, by giving stock, there is no impact on our budget.  We pay our regular monthly expenses as usual.  The donated stock can be replaced in time, providing a tax-free reset or opportunity to rebalance investments."

Gifts of stock and bonds can be used by MVNU just like cash. You can support the MVNU Fund, start or add to an endowed fund, or use stock for a gift that pays you lifetime income, and later the balance is used as you direct at the University.

And they are easy and quick to give with our new stock gift tool. Find the tool and learn more on our Smart Ways to Give page.

Is it better to give cash or appreciated stock?

Assume:  You want to give $10,000 and typically write a check.  You also have some stock (or bonds or other securities) you bought more than one year ago for $1,000 that is now worth $10,000.  You like the stock and think it will continue to appreciate.  What is the smarter way to give, cash or stock?

Suggestion:
If you think the stock will continue to increase in value and want it in your portfolio, consider using the cash to buy the stock at the current price and lock in a new, higher basis (tax cost).   When you eventually sell the stock, only the gain from this point on will be subject to capital gains tax.

What if the stock is worth less than you paid for it?
Should you donate it?

Answer: No. Your deduction would be limited to the fair market value on the date of the gift.  Sell the stock instead and use the loss to offset other gains on your income tax return.

Trick question: 
What if you bought the stock in January for $1,000, and now in October it is worth $10,000, should you give it to MVNU?

Answer: It would be better to give stock that has been held for more than a year.  While MVNU would receive $10,000 either way, if you donate stock held for less than a year, your deduction is limited to your cost, or in this case, $1,000. Good news: you still avoid the capital gains tax.

What if I do not itemize my deductions?

Answer: You would still avoid the capital gains tax and be eligible for the new "above-the-line" $1,000 charitable deduction for individuals ($2,000 for married couples filing jointly) under the recent tax act (called the "One Big Beautiful Bill"). A stock gift would still cost less than selling the stock and giving cash.

Bonus Savings:
If you are on Medicare, giving stock instead of selling it could help keep your income lower and avoid the income-related monthly adjustment amount (IRMAA), a Medicare surcharge.

How do I make a stock gift? 
Isn't it hard to do?

Answer: No. MVNU has made it easy and quick. See our stock gift tool on our Smart Ways to Give page, under "Use Appreciated Securities."

Since the benefits of each gift may be different, you should seek the advice of your legal, tax, or financial advisor.

Is a stock gift right for you?

Making charitable gifts with appreciated property like stocks and bonds and real estate can be an excellent strategy to support the causes you care about and reduce your tax bill.

Please contact us if you would like to learn more or think you have assets that would make a nice gift to Mount Vernon Nazarene University. We would be happy to help you structure a gift that meets your needs.