Many people haven’t realized something simple but powerful: You can avoid more taxes and provide MNHS and other favorite charities greater benefit from your generosity by giving appreciated long-term capital gain property—like stocks or mutual fund shares that have been held for at least a year and have increased in value since purchase—instead of cash. How?
While many people know that you get a charitable income tax deduction for charitable gifts (subject to the usual limitations), it is less well-understood that you also get to bypass capital gains tax on most gifts of appreciated property when you give them to a qualified charity like MNHS after having held them for more than one year. The after-tax cost of the gift is lower (often significantly lower) with appreciated stock and other capital gain property compared with gifts of cash, because with a gift of stock, not only are you allowed a full fair-market value deduction, you avoid paying the capital gains tax on the difference between the value at the time of the gift and your purchase price (again, all subject to certain limitations).
When you give MNHS appreciated property such as stock, mutual funds, or real estate, and MNHS later sells the property, our 501(c)(3) tax exemption means MNHS doesn’t have to pay tax on any gain, unlike individuals who sell property and recognize gain. While everyone should consult with their own professional tax advisors about their specific circumstances, with few exceptions it is better to use appreciated marketable securities for charitable giving in lieu of cash.
How to Give Stock to MNHS
To make a gift of stock to Minnesota Historical Society, your broker will need some or all of the following information:
Account Name: Minnesota Historical Society
Firm: [MNHS’s Brokerage Firm]
Account Number: [MNHS’s Account Number]
DTC #: [DTC # for Brokerage]
Primary Contact: [MNHS’s Primary Contact at Brokerage]
Address: [Brokerage Firm/Primary Contact Address]
Phone #: [Primary Contact Phone #]
Contact at MNHS: Jennifer Payne Pogatchnik at jennifer.pogatchnik@mnhs.org or 651-491-5684
Please notify Jennifer Payne Pogatchnik at jennifer.pogatchnik@mnhs.org or 651-491-5684 when you have made the request to your broker to make sure we can identify your gift when it arrives and process it in a timely manner.
If you would like to make a gift of mutual fund shares, please contact Jennifer Payne Pogatchnik at jennifer.pogatchnik@mnhs.org or 651-491-5684 as well.
