Making a Tax-Wise Gift with Stock
Donating appreciated stocks or mutual funds is a straightforward way to enjoy immediate tax advantages. Donating appreciated assets creates TWO tax benefits:
- The tax deduction is the same size as a gift of cash. (The asset must have been owned for a year or more.)
- You avoid paying capital gains tax.
Remember: Don’t sell then give. If you do, you’ll have to pay the capital gains tax. Instead, give stock directly; Contemporary Craft doesn’t pay any tax when it sells.
Give Appreciated Investments Without Changing Your Portfolio
With a charitable swap, instead of giving cash, you give appreciated stock. Then you use cash to buy the same number of shares in the same company. Your portfolio doesn’t change, but the capital gain is removed because the shares are newly purchased.
Instructions for Stock Transfers
When working with your broker to handle the transfer, please use our brokerage information below.
Please notify Yu-San Cheng, Associate Director (firstname.lastname@example.org), and Leslie Riker, Donor Relations Manager (email@example.com), with the name of the stock and approximate transfer date. This allows CC to properly record the contribution and alert Mr. Drost regarding the action in response to the receipt of the stock.
If transferring mutual funds, please contact Mr. Drost in advance with the name of the mutual funds to be donated.
Fragasso Financial Advisors
610 Smithfield St, Suite 400
Pittsburgh, PA 15222
Account Number: 2120-3121 | DTC Number: 0164, Code 40
Institution: Charles Schwab
1945 Northwestern Dr, El Paso, TX 79912 | 1-601-355-9003
Please note: According to IRS guidelines, the value of a gift of securities for gift-acknowledgment purposes is determined by taking the average of the high and low sale transaction of the security on the date that the transfer is received by CC’s broker, multiplied by the number of shares donated. In some instances, the date the transfer is received by CC’s broker varies slightly from the date the transfer is made from the donor’s account.