Gifts of Appreciated Securities

Securities and mutual funds that have increased in value are the most popular of assets to use when making a gift to UNH. Making a gift of securities or mutual funds offers you the chance to support UNH while realizing important financial benefits for yourself.

When you donate to UNH appreciated securities or mutual funds you have held more than one year, 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 at the time of the transfer.

Ways to Use Appreciated Securities

• A gift in your will or living trust. If you aren't ready to give up these assets during your lifetime, a gift of securities through your will or living trust allows you the flexibility to change your mind at any time. You can continue to receive dividends and participate in shareholder votes, and the securities are still yours if you need them for other expenses.
   
• A donor-advised fund. When you contribute to a donor-advised fund with appreciated securities, you may receive a federal income tax charitable deduction for the fair market value of the asset and eliminate capital gains tax. Because UNH is a non-profit organization, we also do not pay capital gains tax when we sell the gifted securities to fund the designation you choose, so you can make greater impact than with cash.
   
• An endowed gift. Create an endowment or contribute to one that is already established to ensure that your support of UNH will last forever. We can help guide you to the designation that means the most to you.
   
• A charitable gift annuity. Funding a gift annuity with appreciated securities or mutual funds will not only provide you with reliable payments for life and allow you to support our work, but it can offer numerous financial benefits. First, your annuity payments are often more than the dividends you would receive each year from the securities. Second, you can receive a federal income tax charitable deduction (when you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if selling the securities.
   
• A charitable remainder trust. Highly appreciated securities are one of the best ways to fund a charitable remainder trust. You may be reluctant to sell such assets directly because of the tax you would pay on the gain; however, if the assets are transferred to a charitable remainder trust, the assets can be sold without incurring the capital gains tax. The trustee can then reinvest the proceeds in order to secure a higher current income yield.
   
• A charitable lead trust. Rapidly appreciating assets such as stocks are a great way to fund a charitable lead trust. The assets transferred to the lead trust are frozen in value for transfer-tax purposes at the time of funding. At the end of the trust's term, all appreciation that takes place in the trust will pass tax-free to your heirs.

*State laws govern payable on death accounts. Please consult with your bank representative or investment advisor if you are considering this gift.