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How and when to determine the value of publicly traded stock given to charity?

The value of a gift of publicly traded stock is the mean average of the high and low prices on the date of the gift. For example, Jill Donor gifted 100 shares of stock in Twitter to her favorite charity. On the date of Donor’s gift, the high was $45 per share and the low was $42 per share. In this case, the value of a share for charitable deduction purposes would be $43.50 ($45 + $42 divided by 2). The value of the gift would be $4,350 ($43.50 per share x 100 shares).

Remember the subsequent sales price, or current valuation (if the charity retains the stock), is irrelevant for valuing publicly traded stock and determining the charitable deduction. Only one factor matters: the average of the high and low selling price of the stock on the date of the gift.

Gordon Fischer Law Firm, P.C. is dedicated to promoting and maximizing charitable giving in Iowa. Gordon can be reached by phone at 515-371-6077; by email at gordon@gordonfischerlawfirm.com; and through his website at www.gordonfischerlawfirm.com.

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