Appreciated Securities

Securities and mutual funds that have increased in value and been held for more than one year are popular assets to use when making a gift to the Montana Community Foundation. Making a gift of securities or mutual funds offers you the chance to support our work while realizing important benefits for yourself.

When you donate appreciated securities or mutual funds in support of Montana communities to benefit any of the hundreds of endowment funds at MCF, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities on the date they are received by MCF, as well as the Montana Endowment Tax Credit when your donation is used to establish certain planned gifts.

Securities are most often used to support our work in the form of:

An outright gift. When you donate securities to MCF, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.

A planned gift. Gifts of appreciated securities are an extremely popular way to fund planned gifts, such as a charitable gift annuity (DGAs and CGAs), to benefit any of the hundreds of endowment funds at MCF. Not only are you able to reduce or eliminate capital gains, but Montana taxpayers enjoy the added benefit of their gift qualifying for the Montana Endowment Tax Credit.

Additional ways to utilize gifts of securities:

• A gift in your will or living trust.
• A donor advised fund.
• A memorial gift.
• An endowed gift.
• A charitable gift annuity.
• A charitable remainder trust.
• A charitable lead trust.
• A transfer on death (TOD) account.*

*By placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime.