Stock & Appreciated Securities

Here's how it works...

Donating stocks or other securities may offer you special tax advantages. A charitable contribution of long-term appreciated securities; i.e. stocks, bonds and/or mutual funds that have realized significant appreciation over time is one of the most tax-efficient of all ways to give to The Prep! This method of giving has become increasingly popular in recent years because of two key advantages:

Any long-term appreciated securities with unrealized gains (meaning they were purchased over a year ago, and have a current value greater than their original cost) may be donated to The Prep and a tax deduction taken for the full fair market value of the securities up to 30% of the donor's adjusted gross income.
Since the securities are donated rather than sold, capital gains taxes from selling the securities no longer apply. The more appreciation the securities have, the greater the tax savings will be.

The easiest way to transfer securities to Seton Hall Prep is broker to broker. If your stock is held by a broker, notify him or her that you wish to make a gift of securities to Seton Hall Prep. Your broker will need written authorization from you before the transfer is made. Be sure to provide the name of the stock that you want to transfer, the number of shares, and indicate that you would like your gift to be designated to Seton Hall Prep. Once you have authorized the transfer, ask your broker to contact Seton Hall Prep's broker:

Kerri Koop
Stifel Nicolaus
1040 Broad Street, Suite 301
Shrewsbury, NJ 07702
888.231.7226, DTC# 793, SHP Account # 5207-9671

When making a gift of stock, please also notify The Prep's Advancement Office of the name of the security that is being transferred. Simply call or e-mail Mrs. Judy Gunn at jgunn@shp.org or at (973) 325-6633.

Benefits
Assuming you are giving long-term (owned for 12 months or more) appreciated securities, you will receive a charitable income tax deduction equal to the fair market value of the shares. For common stock this is typically the mean value on the date that we take control of the shares you give. You will pay no capital gains tax. Gifts of stocks are deductible up to 30% of your adjusted gross income the year you make your gift. Any excess amount can be rolled over into the next tax year, for up to five additional tax years if needed. You simply transfer appreciated stocks, bonds, or mutual fund shares you have owned for more than one year to Seton Hall Prep and SHP sells your securities and uses the proceeds for our programs!

You receive an immediate income tax deduction for the fair market value of the securities on the date of transfer (even if you originally paid much less for them).
You pay no capital gains tax on the transfer when the stock is sold.
Giving appreciated stock can be more beneficial than giving cash. The "cost" of your gift is often less than the deduction you gain by making it.