When Making a Gift to Fund a Charitable Gift Annuity, we will need to know the date of acquisition and the cost basis for your asset(s). We will also need to know if the asset is held individually or jointly. The securities you use to make your gift must have been held by you for at least a year.
Plan Ahead When Making Your Gift. If you are making a gift at year-end for a tax deduction in that calendar year, be aware of the time it takes for assets to transfer completely, The transfer of mutual funds in particular can take six weeks or longer. For electronic transfers and transfers of mutual funds, the official date of the gift is the date the assets are received by Penn State. For gifts of physical certificates, the date of the gift is the postmark date.
Avoid Selling Appreciated Stock and Giving the University the Proceeds. Although this will still count as a gift, the IRS will impose capital gains tax on your sale, depriving you of a key tax benefit.
Don’t Transfer Securities That Have Depreciated in Value. The fair market value deduction rule works against you: if you bought the stock for $50,000 and it’s now worth $30,000, your charitable deduction will be limited to $30,000. You won’t earn a capital loss by making the transfer. Instead, sell the depreciated stock, claim the resulting tax loss as a single deduction, and then use the proceeds to make a tax-deductible cash gift to Penn State.