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Whether it is your class reunion or you wish to make a gift towards the Bryn Mawr Fund, generous alumnae/i and friends of Bryn Mawr College can make their gifts go further with gifts of securities. Instead of writing a check, two great things happen when you transfer shares of publicly traded securities to Bryn Mawr (provided they have gone up in value and been owned for more than one year).

First, your stock gift qualifies for a charitable deduction for the full fair market value on the date it is received by Bryn Mawr. Then, because the shares were given instead of sold, you avoid recognizing the capital gain on the transfer (Bryn Mawr pays no tax either). Know also that the capital gains tax rates are 15 percent for many taxpayers, plus an additional Medicare tax of 3.8 percent on net investment for individuals earning more than $200,000 ($250,000 if married and filing a joint return).

Example:

  • Jane owns 400 shares of Johnson & Johnson common stock that she and her husband purchased in February of 1995 at $14 per share. Those shares are trading around $130 per share now, or $52,000. In their tax bracket (24 percent), if Jane sells the shares, she’ll pay $8,723 in capital gains and Medicare taxes.
  • Instead, Jane contributes 400 shares valued at $130 per share to Bryn Mawr. She may claim an income tax charitable deduction for $40,000 (which is the $52,000 value less the standard deduction of $24,000). In her tax bracket, this saves her $5,264 in income tax. Adding the $8,723 capital gain and Medicare taxes she and her husband avoided, their net cost to give $52,000 to Bryn Mawr College is $38,013 – which is 73 cents on the dollar, compared to a cash gift of the same amount.

Please consider giving appreciated securities to fund your important gifts to help support the future of Bryn Mawr College. Talk with your attorney or financial advisor about taking full advantage of this tax-wise opportunity. Questions should be directed to the Office of Gift Planning at 610-526-6597 or giftplanning@brynmawr.edu.