A DONATION OF STOCK IS A SENSIBLE WAY TO MAKE AN ANNUAL GIFT TO VLT
Many individuals prefer contributing stock, rather than writing a check from current income, to
fulfill their annual gift. By giving appreciated property (for example, stocks or bonds) the donor can
avoid paying capital gains taxes on the appreciation, receive a tax deduction on the full value of the
gift, and support the Vermont Land Trust at lower donor cost. Some donors also like to contribute
“odd lots” in their portfolios, which are created when a stock splits or they receive dividends of
additional shares. Other donors use stock to endow their annual gift or establish a planned gift, such
as a charitable gift annuity.
When any donated property has appreciated in value (including stock or real estate), the donor's
deduction is limited to 30 percent of adjusted gross income (AGI), instead of the 50 percent limit
allowed for cash gifts. NOTE: the unused portion of the tax deduction may be carried over for up
to the next five years.
An Example of the Effect of the 30% Limitation
A landowner donates an appreciated asset valued at $80,000 to the Vermont Land Trust. Her
adjusted gross income in the year of the gift is $50,000. Assuming her income remains constant
over the next five years, she could use the charitable deduction resulting from the gift as follows:
30% of $50,000 = $15,000
DEDUCTION
Year 1
$15,000
Year 2
15,000
Year 3
15,000
Year 4
15,000
Year 5
15,000
Year 6
5,000
Total
80,000
Note: if the landowner's donation value had exceeded $90,000, she would not have been able to
"use up” the entire deduction.
For more information about gifts of stock or other appreciated property, or to discuss planned giving
opportunities, call Annie Crawford at (802) 262-1241.
HOW TO MAKE GIFTS OF STOCK
Thank you for considering a gift of stock or securities to the Vermont Land Trust. To complete your
gift, please notify your broker in writing that you are making a charitable gift of stoc