What assets work best in making a charitable gift?
By far the most common asset given to charity is cash, in the form of a check, money order or credit card charge. Gifts of cash are easily made and avoid complications that might be present with noncash gifts, such as the need to establish the proper value for income tax charitable deduction purposes. However, from a tax perspective, the most advantageous assets for lifetime gifts are appreciated securities held for more than one year or other long-term capital gain property. Generally such gifts entitle the donor to an income tax charitable deduction for the full fair market value of the donated property. Further, the donor avoids entirely the capital gain tax that would otherwise be realized on the sale of the asset. For gifts to private foundations, some limitations apply and, in general, a full fair market value deduction is available only for “qualified appreciated stock” as defined under tax rules. However, these limitations do not apply to public charities such as the University
