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Donating Appreciated Assets to AHLA

 

​Make a bigger impact by donating long-term appreciated securities, including stock, bonds, and mutual funds, directly to AHLA. Compared with donating cash, or selling your appreciated securities and contributing the after-tax proceeds, you may be able to automatically increase your gift and your tax deduction.

How Does It Work*​

It’s simple and easy. When you have profits in a taxable account, the idea of having to pay capital gains tax when you sell can be a deterrent to basic portfolio maintenance.

Donating stock, fund shares--or just about any appreciated asset--wipes out any capital gains tax bill assuming you owned the asset for at least one year. You might also claim the value of the donation as a charitable deduction in the year you make the move.

Make the Most of Your Asset

​In 2013, John began investing in stocks. In 2017, he realized his investments appreciated to twenty-five times the value of when he purchased the stock. He wanted to make a significant charitable contribution to AHLA, to demonstrate his appreciation for all that AHLA has done to advance him through his health law career. John knew that if he sold some of his appreciated assets, he would have to pay capital gains tax on the appreciation because he acquired it and started holding it for investment purposes two years ago. Then he heard that AHLA could accept stock as a charitable contribution.

He made a contribution of stock, which was worth about $10,000 at the time, to AHLA, as opposed to selling the stock and donating the after-tax proceeds. 

AHLA, a tax-exempt 501(c)3 nonprofit, immediately liquidated the stock without having to pay capital gains tax. In addition, John would generally be entitled to claim a fair market value tax deduction for the contribution. As a result, John is able to support AHLA by way of a donation and he could claim a higher deduction than if he only donated the after-tax proceeds of his sale of the stock. 

By contributing the shares to AHLA, John is able to eliminate his capital gains tax exposure and take a charitable deduction in the amount of the fair market value of the shares.

*​AHLA does not provide tax, legal or accounting advice. The content above has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

 Gift Instructions

Stock or securities should not be sold by you, rather sent to AHLA properly endorsed with a certificate of transfer.

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American Health Lawyers Association Inc.

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Howard Franzblau
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