The gift
of appreciated securities - stocks, bonds, or mutual funds that
have grown in value - can be an easy way of making a contribution
and one which may have tax advantages for you. You might even
be able to consider a larger gift than you would have otherwise
given - the size you wish you could make! The recommended minimum gift amout is $1,000.
Do I have to pay capital gains tax on the stock if I transfer it?
It depends on the organization to which you transfer the stock.
If you
transfer long-term held stock to a 501(c)(3) charitable organization,
such as the FCNL Education Fund, (rather than selling the stock
and giving the cash) you do not have to pay the capital gains
tax on the appreciated value of the stock and you can take a
charitable deduction for the full current value of the stock.
(If you transfer stock that has not been held long-term, your
deduction is limited to your original cost basis for the stock.)
A stock transfer to a non-deductible [501(c)(4)] organization,
such as FCNL, also means that you do not have to pay capital
gains tax although you are not eligible for a charitable tax
deduction for the value of the stock itself.
How do I make a gift of stock?
For stock held in your brokerage account: This stock can be electronically transferred
to either FCNL (not tax deductible) or the FCNL Education Fund
(tax deductible).
To make this gift of securities, call
the FCNL Development Office (800-630-1330)
or email .
You will receive transfer instructions to pass on to your broker.
Often the arrangements can be completed by telephone; this is
one of the easiest ways of making a gift!
For stock for which you hold the actual stock certificates:. You will need to take the following steps:
- Be sure to sign the certificates in the presence of a guarantor (your bank or brokerage can usually do this.)
- On the back of the
certificate there should be some blanks to fill in for transferring
ownership. In the appropriate spaces and in the guarantor's presence, sign your name (or names,
if joint) exactly as your name(s) appears on the face of the
certificates.
- In the blank space between the words "appoint _________________ attorney," fill in "Charles Schwab & Company." The
certificates are now non-negotiable.
- Send the certificates to FCNL through the U.S. mail along with a letter
stating your intent to give the named securities to FCNL or
the FCNL Education Fund (please specify which). FCNL's postal address is 245 2nd St. NE, Washington, DC 20002.
For gifts
to be credited to you in the current calendar year, the electronic
transfer from your account or the postmark on the transmittal
of the stock certificates must be no later than December 31.
After we
receive verification of the electronic transfer or receive the
certificates, we will send you an acknowledgment letter showing
the date and value at the time of transfer and whether the gift
was to FCNL or the FCNL Education Fund. You can use this letter for your income tax records.
Questions? Contact the FCNL Development Office at (800) 630-1330 or by email at
Reviewed:
03/09/2007
More Ways to Give
|
