Appreciated Securities

Giving appreciated securities to UCSF can benefit you in several ways. When you give stocks, bonds, shares in a mutual fund or securities that you have owned for more than 12 months, you are allowed to take a charitable income tax deduction at full market value. You also avoid the capital gains tax you would have owed if you had sold the securities. Click here for an example of how they work.

Valuing Stock
The value of a gift of publicly traded securities is the mean of the high and low trading prices on the day of the gift. UCSF values gifts of stock as of the date on which they are received. If you mail the securities to UCSF, the postmark will serve as your date of gift. If you transfer securities through your broker or banker, the gift date is the day on which your securities reach UCSF’s account.

Taking Charitable Deductions
For a gift of appreciated securities, you may deduct up to 30 percent of your adjusted gross income in the year in which you make your gift. You may carry over any unused deduction for up to an additional five years.

Splitting Stock
If you wish to donate fewer shares of stock than the number printed on the stock certificate, you should advise your broker or banker to arrange for “splitting” the certificate. You may also contact the UCSF Foundation to arrange for a new certificate to be issued.

Handling Depreciated Securities
It is generally inadvisable to donate securities that are presently worth less than you paid for them. Instead, you may wish to sell the securities to establish a deductible tax loss and donate the sales proceeds to UCSF.

Giving Short-Term Securities
Making a gift of appreciated stock owned for 12 months or less is generally inadvisable. Your deduction for this type of gift is limited to the amount you paid for the securities.

Funding a Charitable Life-Income Plan
In addition to outright gifts, you may use securities to fund a charitable life-income plan for your lifetime and/or the lifetime of someone else, such as a spouse or child. In addition to supporting UCSF, these plans offer both income tax and estate tax advantages. Moreover, they can often increase your income.

Giving Closely Held Stock
It is possible to make a gift of closely held or restricted stock, but this sort of gift requires special handling. Please contact the UCSF Foundation for more information. Contact the Office of Planned Giving for details on this process.

A Word AboutTax Law

Tax rates differ depending on how long you have held an asset. The maximum federal capital gains tax rate on appreciated stock held for more than 12 months before sale (known as long-term capital gains property) is 15 percent of the net gain from the sale. For property held 12 months or less (known as short-term capital gains property), the capital gain is taxed at ordinary income tax rates. California taxpayers also pay state income tax on the capital gain at ordinary income tax rates. Please consult your tax advisor for rates applicable to you.

To Learn More
Read more about this type of gift in Benefits for All: A Guide to Giving Appreciated Securities. Ask for a copy of this brochure by using the form on the Request More Information page.

Download the Comparison Chart of Giving Plans