Giving Stocks, Securities, and Mutual Funds
When you donate appreciated stocks, bonds, and mutual funds, you can avoid taxes on your capital gains while also taking an income tax deduction for the fair market value of the shares. To maximize these benefits, the IRS requires:
- Holding Period: You must have owned the asset for over one year.
- Direct Transfer to Groton School: Instead of selling the shares and giving the proceeds, transfer the shares directly to Groton School to avoid capital gains taxes. As a tax-exempt organization, Groton School will not owe taxes when it sells these shares.
Please inform us once you’ve instructed your broker to transfer the shares so we can coordinate accordingly.
Consult with Your Advisors
We encourage you to speak with your financial and tax advisors before making a gift. The IRS offers tax incentives for charitable giving, enabling you to support a cause you value while potentially reducing your tax burden.
Thank you for considering a generous gift to help sustain Groton School.