Donating Appreciated Assets
The simplest way to donate to the United Nations Association of Southern Arizona (UNA-SA) is through gifts of cash; however, this may not always be your most tax advantageous way to give. Gifts of other assets, especially appreciated financial assets, may help you avoid capital gains taxes. Because UNA-SA is a charitable tax-exempt organization, it can accept appreciated assets and then liquidate them without having to recognize capital gains. The donor, in turn, may be allowed to take a charitable deduction in his income tax reporting for the full value of contributed assets.
A donor wishes to make a $10,000 contribution to UNA-SA. He or she owns stocks or bonds purchased some years ago for $2,000, which have a current market value of $10,000, potentially resulting in a capital gain of $8,000 ($10,000 - $2,000 = $8,000) on which capital gains tax would be due if the stocks or bonds were sold.
The donor could avoid paying any tax on the capital gain, however, by contributing the stock directly to UNA-SA. And he or she is still eligible for an income tax deduction for the full $10,000 as a charitable gift!
Gifts of appreciated securities:
Donations of publicly traded stocks or other investments that you have held for more than one year generally escape capital gains taxes and allow an income tax deduction based on the fair market value on the date of the gift.
Gifts of real estate:
Many real estate holdings have appreciated greatly in recent years and may be subject to capital gains taxes if sold. Donation of real estate directly to UNA-SA or through the use of a charitable remainder trust often minimizes these taxes and generally provides an income tax deduction.
Gifts of other assets:
Other assets, such as collectibles or personal property are sometimes offered as donations to UNA-SA and are considered on a case-by-case basis. A donation of such assets may not be eligible for advantageous treatment as a charitable deduction if they are unrelated to the charitable purposes of UNA-SA.
UNA-SA maintains an account with Scottrade Financial Services into which these assets can be transferred, usually at no fee to the donor. The Tucson-area Scottrade office is located at 7805 N. Oracle Rd, Ste 151, Tucson, AZ 85704, tel: 520-571-7700/800-830-1997; facsimile 520-512-1134. The UNA-SA account number into which assets can be transferred is: 80491634.
Check and donate!
Consider transferring appreciated assets to UNA-SA so it can continue its educational mission and contributions to other UN 'good works', particularly UNICEF. Check with your estate and tax advisors if this 'win-win' opportunity is right for you. Your financial advisor or the Scottrade office above can inform you how to accomplish a transfer.