Tax-Wise Giving: Donating Stock
Are you interested in making a charitable gift that may yield double tax benefits and additional savings? If so, a gift of appreciated stock may be the right option for you.
A gift of stock may provide more benefits than a cash gift. When you make a gift of stock to the BCS Foundation, by eliminating the capital gains tax that would be due upon selling the stock, you receive tangible tax-savings and benefits while also supporting our teachers, specialists and classrooms.
A gift of stock may* be right for you if:
1. You are holding stocks that have risen in value. If your stocks are highly appreciated, you may find yourself with a hefty tax bill when it comes time to sell. By using these securities as a gift, you can avoid the capital gains tax on any paper profit.
2. You would like to maximize your deduction while not affecting your liquidity. If you decide to make a gift of stock, you not only retain your cash assets, but you also receive a charitable tax deduction for the full fair market value of the stock that you’ve owned for more than one year.
*We always suggest you consult a tax professional before making a gift of securities.
FAQs: Donating Stock
How will my securities donation be valued?
For securities that freely trade daily, the Foundation values your donation using the mid-point price between the high and low price on the date that the stock is received into the Foundation’s account. Please note that while most transfers happen in a few days, some transfers may take weeks to be received. It is the transferring broker that generally controls how long the transfer process takes, and the Foundation is not responsible for price fluctuations that may occur between the date you provide your broker with instructions and the date the securities are received into the Foundation's account.
How do I know the Foundation received my donation?
After the shares have been received, we will send you a letter confirming details of the donation. You will be able to use this letter to claim the appropriate deduction on your tax return for the tax year in which the donation was made.
Can I donate any type of security to the Annual Campaign?
Not necessarily. You may donate any securities that are freely tradable on the NYSE, AMEX, or NASDAQ exchanges and may be sold immediately upon receipt by the Foundation. Other securities require prior approval from the BPESF Gift Acceptance Committee. If you have any doubt as to whether the securities you propose to donate are freely tradable, please discuss this matter with the Treasurer (email@example.com) prior to initiating the securities transfer.
Who can I contact with questions concerning my securities donations?
If you have any questions regarding these procedures, please contact the Treasurer (firstname.lastname@example.org).
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