Gift of Appreciated Stock and Mutual Funds

APPRECIATED STOCK

OVERVIEW

Take advantage of a win/win for you and TACA, a 501(c)(3) non-profit, when you donate appreciated stock. Taxpayers have long enjoyed the opportunity to give appreciated stock held for more than one year, bypassing the 20% capital gains tax, and to take an income tax deduction based on the fair market value at the time of the gift. The market value is deductible up to 30% of adjusted gross income for that tax year, with carry-over possibilities for five years.

The gift is complete when you have delivered the stock transfer details to your broker, and it has been transferred to TACA’s stock transfer account at our broker, Schwab. The actual endorsed stock certificate can also be sent by mail to TACA and is complete when it is postmarked.

EXAMPLE of giving stock rather than selling stock and giving cash

Hypothetical Example (assuming $5,000 investment has been held for more than a year, 20% long term capital gains tax rate, and 39.6% federal income tax bracket)

           Sell stock & donate net proceeds (cash) to TACA          Donate stock to TACA  
     
Assumed Fair Market Value of stock to be
   
donated (1,000 shares @$50 per share) $50,000 $50,000
     

Long term capital gains tax

$9,000 paid $9,000 avoided
     
Amount donated to TACA (Cash or value $41,000 $50,000
of stock minus capital gains tax paid)
     
Value of charitable income tax $16,236 $19,800
deduction
     
Total Donor Tax Savings $7,236 $19,800
     

HOW TO CONTRIBUTE

It is not complicated. If your broker holds the stock, deliver the stock transfer details to your broker in writing with instructions to transfer the appreciated stock to TACA’s broker. Have your broker contact TACA at (949) 640-4401 for pertinent account information. If you hold the actual stock certificates, sign a stock power form for each certificate you hold and send two envelopes to TACA by certified mail, one holding the stock certificates and one holding the signed stock power forms. Stock power forms are available from any broker or financial institution. Our address is TALK ABOUT CURING AUTISM, 2222 Martin Street, Suite 140, Irvine, CA 92612.

 Mutual Funds

You may donate mutual funds, but the process usually takes a little longer because each mutual fund company has its own requirements for making charitable contributions. Call us and we can help, especially if we need to create an account with them before the transfer can occur.

We thank you for considering these win/win options to contribute and are will willing to help in any way or answer any questions.