Taking Stock . . . And Giving It
Many people own appreciated shares of stock — stock that has risen in value over time – and chose to give such shares to the Monhegan Historical and Cultural Museum Association instead of cash. Transferring appreciated stock benefits both the donor and the Museum. The donor avoids having to pay taxes on the appreciation and can take an income tax deduction on the full value of the stock (pending some IRS limitations). And, because Monhegan Museum is a qualified charitable organization, it can sell the stock and avoid any tax on the appreciation.
Historically, year-end is a popular time for making stock gifts, but it can be done at any time during a year. Many thoughtful donors review their stock portfolio periodically and select those stocks which have appreciated the most and which have been held for more than a year. These donors give stock instead of cash because they have discovered the value, and enjoyment, of stretching their giving power by gifting the capital appreciation and prudently giving more to help the worthy efforts of the Monhegan Museum.