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Stocks/Bonds/Mutual Funds

Unlock the Power of Your Appreciated Securities

Gifts of publicly traded stocks, bonds, or mutual fund shares can yield a wealth of potential benefits for you and MSK. With this type of gift you can:

  • Eliminate capital gains taxes on the securities you donate—if you've held them for more than one year.
  • Qualify for an income tax charitable deduction based on the current fair market value of the securities on the date of the gift, depending on your tax situation.
  • Provide valuable support to MSK's patient care, research, and educational programs.
  • Enjoy membership and special benefits as part of the Cullum Society.

Options to Consider

Appreciated securities are among the most versatile and economical assets to donate.

  1. Life Income Gift. Use appreciated securities to fund a charitable trust or gift annuity, which can provide you, your spouse, or other beneficiaries annual income for life.
  2. Stock vs. Cash Gifts. The chart below shows how the giving method of your donation can affect your potential benefits and gift amount. (The example assumes you are in a 32 percent federal income tax bracket.)

$25,000 Given Three Ways

Which Benefits You—and MSK—More?
  Give $25,000 Cash to MSK Sell $25,000 in Appreciated Securities and Give Cash to MSK Give $25,000 in Appreciated Securities Directly to MSK
Fair market value of gift $25,000 $25,000 $25,000
Cost basis of property N/A $5,000 $5,000
Long-term capital gain of property N/A $20,000 $20,000
Long-term capital gains tax
($20,000 x 15%)
N/A ($3,000) due to IRS $3,000 eliminated
Income tax savings
($25,000 x 32%)
$8,000 $8,000 $8,000
Total tax savings
(capital gains tax + income tax savings)
$8,000 $5,000 $11,000
Net cost of gift
(fair market value of gift – total tax savings)
$17,000 $20,000 $14,000

Guidelines

  • The income tax deduction for appreciated securities you've held for more than one year is limited to 30 percent of your adjusted gross income in the year you make the gift, but your excess deduction is deductible for up to five additional years.
  • Your securities will be valued on the date they become MSK's property. The value of your gift is the average of the high and low selling prices on the date they are credited to MSK's account.

Next Steps

  1. Request transfer instructions on gifts of stocks, bonds, or mutual funds, or additional information from our Office of Planned Giving staff.
    Toll free: 800-688-1827
    Email: plannedgiving@mskcc.org
  2. Seek the counsel of your financial or legal advisor.
  3. Please use our legal name, address, and Federal Tax ID if incorporating MSK into your plans:

Legal Name: Memorial Sloan Kettering Cancer Center
Address: 1275 York Avenue, New York, NY 10065
Federal Tax ID Number: 13-1924236

A charitable bequest is one or two sentences in your will or living trust that leave to Memorial Sloan Kettering Cancer Center a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

An individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust, or retirement plan.

I bequeath to Memorial Sloan-Kettering Cancer Center, a New York nonprofit corporation having a principal place of business at 1275 York Avenue, New York, NY 10065, Federal Tax ID #13-1924236, ____percent of my total estate (or $_____, or other property) to be used or disposed of as Memorial Sloan-Kettering Cancer Center in its sole discretion deems appropriate.

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor-advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to MSK or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate, or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property, or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to MSK as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to MSK as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and MSK where you agree to make a gift to MSK and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

A tax imposed at one's death on the transfer of most types of property. Currently federal estate taxes are assessed in 2019 on estates worth more than $11.2 million. The maximum estate tax rate is 40 percent. Some states also impose taxes at death that vary depending on state law.

A written legal instrument created by a grantor for the benefit of him/herself (during life) or others (during life or at death).

A revocable trust established by a grantor during his or her lifetime in which the grantor transfers some or all of his or her property into the trust.

Equity or debt instruments, typically shares listed on a stock exchange, which can be readily bought or sold.