Stocks, mutual funds, bonds, or any other publicly traded securities can be transferred as gifts.
The Advantages of Making a Gift of Stock
- The market value of a gift of stock and securities is tax-deductible, just like any other charitable contribution
- Giving stock or securities has an additional tax advantage over a cash gift: you avoid capital gains tax on the appreciation of the asset
- A gift of stock or securities could increase the value of your gift to Dana-Farber and the Jimmy Fund at a decreased cost to you (see the example below)
How to Make a Gift of Stock
For more information on transferring securities to Dana-Farber Cancer Institute, please contact us at:
Dana-Farber Cancer Institute
10 Brookline Place West, 6th Floor
Brookline, MA 02445
Email: dfciask_devfiscal@dfci.harvard.edu
Phone: 617-632-3019
Please provide the following:
- Name of the security
- Number of shares for each security
- Purpose(s) of the gift (that is, how to direct the funds)
- Any special handling details (pledge payment, tribute, etc.)
Not communicating the above may lead to delays in identifying, crediting, and acknowledging your gift.
Compare the following three ways you could give using a $10,000 gift as an example:
| Give a Cash Gift to Dana-Farber and the Jimmy Fund | Sell Appreciated Stock and Give Proceeds to Dana-Farber and the Jimmy Fund | Transfer a Gift of Appreciated Stock to Dana-Farber and the Jimmy Fund | |
|---|---|---|---|
| Fair Market Value (FMV) of Gift | $10,000 | $10,000* | $10,000* |
| Long-Term Capital Gains Tax ($4,000 x 15%) |
N/A | $(600) (Due to the IRS Tax on Appreciated Stock) |
$600 (Capital Gains Tax Savings) |
| Income Tax Savings** ($10,000 x 24%) |
$2,400 | $2,400 | $2,400 |
| Total Tax Savings (Capital Gains Tax Savings + Income Tax Savings) | $2,400 | $1,800 | $3,000 |
| Net Cost of a $10,000 Gift (FMV of Gift - Total Tax Savings) | $7,600 | $8,200 | $7,000 |
*For which you paid $6,000 and have a $4,000 capital gain
**This example uses a 24% tax bracket
Always consult with your tax advisor for specific tax information when giving securities, as certain limitations to deductions may apply.
Are You a Financial Advisor?
If your clients are looking to make a gift of stock, please note Dana-Farber's tax ID number is 04-2263040. Please see our Resources for Advisors for more information.