Gift of Securities
Why Are Gifts of Appreciated Assets So Valuable?
What is the best asset a person can give to charity? Tax-wise, gifts of securities, real estate, or other assets that have gone up in value are the hands-down winners.
Why? Because donors receive a double tax benefit: They can deduct the full fair market value of their appreciated assets—if owned more than one year—and they save again by avoiding all capital gains taxes on their “paper profit.”
Planning Techniques for Gifts of Appreciated Securities
Get the value of your listed securities. Your tax deduction for a gift of appreciated securities is the market value of the securities on the day your gift is made. For actively traded securities, value is the mean (average) between the highest and lowest quoted sales price on the date of the gift.
Your gift is effective on the day you hand-deliver a properly endorsed stock certificate, or mail an unendorsed stock certificate to us, accompanied by a signed “stock power” that is mailed separately. Mailing on a high value day means a bigger tax deduction for you. If you plan to contribute stock held in “street name” (in a brokerage account), please have your broker contact the medical center’s development office immediately. The gift is complete, for tax purposes, on the date your stock is actually transferred into the medical center’s account.
Don’t overlook mutual funds. Mutual fund shares can be given to GRMC with the same benefet as listed and actively traded stock. Your deduction is the public redemption value of the share.
If you own stock that has gone down in value, sell the stock and contribute the proceeds. You’ll receive a gift deduction plus a capital loss deduction.
How to Make a Gift of Securities
- If the certificates are held in a brokerage account (in “street name”), have your broker contact the hospital’s development office for instructions.
- If you possess the stock certificates, send the unendorsed stock certificates by registered mail to our office. Enclose a cover letter outlining the purpose of your gift, along with a description of the issues and the number of shares and certificates. Alternatively, you can hand-deliver securities to GRMC.
- Send separately a signed “stock power” form for each certificate with the name of the issue filled in and the signature guaranteed by a broker or officer of a national bank. It is a good idea to sign a blank stock power without filling in the recipient name, which permits GRMC to sell the stock quickly.