Gift of Appreciated Stock or Other Securities

A gift of appreciated stock allows the donor to avoid capital gains tax and take an immediate tax deduction on the value of the gifted stock. Because AIA, like most charities, is not organized to receive gifts of securities directly, the gift must be made to a qualified charitable organization.

For example, the Fidelity Charitable Gift Fund is an independent public charity qualified to receive gifts of appreciated stock and other securities to be placed in a donor advised fund. The donor can then direct that gifts be made to AIA or other IRS qualified charitable organizations. The minimum contribution to establish an account is $5,000. For more information, log on to

While the tax deduction is immediate, the gifts can be spread out over a period of time to a variety of charities. Meanwhile the donor directs the investment of the funds into accounts that can grow tax-free. Other companies including Charles Schwab and the Bank of America offer charitable funds.

Your gift will be acknowledged for income tax purposes. Of course, you should consult with your financial advisor as to how the above applies to your personal tax situation.