Stock and Securities
While gifts of cash to the Foundation are essential and always gratefully received, charitable gifts of securities may be especially beneficial for many people due to vitally important incentives present in our tax system. Just as cash gifts to the USA Cycling Foundation are deductible from federal income tax returns for those who itemize, gifts of qualified non-cash properties are also deductible.
The Special Incentives of Non-Cash Securities
Many securities you own may be worth much more than you paid for them in past years. As appreciated securities, these are attractive gifts. In most cases the deduction is for the current fair market value of the securities given. The deductible amount includes both what you paid and your gain. This may dramatically reduce the cost of making a charitable gift, or help to increase the amount you can afford to give. To deduct gifts of appreciated securities at their current value, you must have owned them for at least one year and one day.
What Is Best To Give?
Publicly traded securities are usually the simplest to give due to the ease of transferring them and determining their value for deduction purposes. Closely held stocks may also be given, but special rules apply to them. Other properties may make outstanding gifts, but again, special rules may apply. It is usually better to sell securities that have dropped below their original value and then give the cash proceeds, as you may realize tax benefits from both the capital loss and the charitable gift. Please consult your tax advisor prior to making gifts of this type in order to maximize both your gift and your deduction.
Making the Transaction
After you have chosen the security and the amount you will give, your investment broker can help complete the gift. Please contact the USA Cycling Foundation office for exact Giving Instructions.