The gift of an asset, often common stock or mutual fund shares, is a valuable way to make a contribution to public broadcasting and receive tax benefits based on the value of the asset(s).

For example, suppose Richard and Terri had 300 shares of XYZ Corporation that they purchased at $15 a share some years ago. The current value in today's market is $36 a share. If they sold the stock in the market, they would have a taxable, long-term capital gain on the difference between their cost and what they would receive from the sale ($36 minus $15 = $21 capital gain per share. 300 shares X $21.00 = $6,300 in capital gains).

Richard and Terri could sell the stock, pay the tax on the capital gain, and either keep or donate the proceeds. If, instead of selling the stock, they gave the 300 shares to public broadcasting, they would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) as a charitable gift. By donating the stock, public broadcasting receives more than it would receive if Richard and Terri first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, Richard and Terri receive a greater tax deduction by giving the stock directly and avoiding the capital gain tax.

Gifts of Tangible Personal Property While the gift of appreciated assets often involves stock, other marketable assets can be utilized as potential gifts with the possibility of valuable tax benefits. This category includes items like an art object, a prized collection, or antiques. You can donate such property to us and take a deduction for its full fair market value if the item’s use is related to our exempt procedures. But if you’re unable to establish that we can use the gift property for a purpose related to our purposes, you can deduct only the cost basis. These assets are reviewed by us on a case-by-case basis.

For more information about planned gifts, please contact Stephanie Bergsma at (619) 594-7822 or by email.  You may also write to: KPBS Friends for Life, 5200 Campanile Drive, San Diego, CA 92182.