Most people think of cash when they consider a charitable contribution, but a gift of securities may be a wiser choice. By contributing appreciated securities to United Way of Larimer County, you make a powerful community contribution while gaining valuable tax advantages. If you have owned appreciated securities for at least a year and a day, your contribution can offer the following benefits:
Eliminate Capital Gains Tax
By donating your appreciated securities, you avoid the capital gains tax you would owe if you sold the securities yourself. The deduction of gifts of appreciated capital-gains property is limited to 30% of your adjusted gross income, subject to the five-year-carry forward provision.
Enjoy a Last Minute Tax Break
At the end of the calendar year, when tax breaks and timing are critical, securities can be deducted on the date you transfer them.
Claim the Market Value
By claiming the market value (versus the cost basis) of the securities, you can enjoy a charitable contribution tax deduction equal to the average of the highest and lowest quoted sales price on the day you make the gift.
Stock Advantages Over Cash
Your securities donation can deliver significant tax advantages over a cash donation, allowing you to fund the community issues you care about at a lower after-tax cost to you. The chart below depicts the difference between the after-tax cost of a gift of cash and a gift of stock. Assume that the stock was originally purchased at $250 (basis), the income tax rate is 27%, and the capital gains tax is 20%.
| Potential Stock Benefits |
| |
Cash |
Stock |
| Value of Gift |
$1000 |
$1000 |
| Ordinary Income Tax Deduction |
($270) |
($270) |
| Capital Gains Tax Savings |
$0 |
($150) |
| After Tax Cost of Gift |
$730 |
$580 |
NOTE: THIS TABLE IS FOR ILLUSTRATIVE PURPOSES ONLY. ONLY YOUR OWN FINANCIAL OR TAX ADVISOR CAN ADVISE IN THESE MATTERS.
*For tax receipt purposes, actual stock valuation is based on the mean of the highest and lowest price on the day the stock is received by United Way of Larimer County. As a rule, gifts of stock will be liquidated when received, brokerage fees will be deducted from the gross proceeds. The net proceeds will be disbursed to your charities.
You can provide to your broker the following information to donate stock to United Way of Larimer County:
Brokerage |
Account # |
DTC # |
Contact |
Telephone # |
| Charles Schwab |
United Way of Larimer County
3392-1426 |
Clearing 0164, code 40 |
Mark Hanney |
970-212-4716 |
**If your stock is foreign stock held in a domestic account please contact United Way of Larimer County for alternate procedures.
It is important that United Way of Larimer County receives some notice from you or your broker that a donation of stock has been processed. Please include date, number of shares, and description of the stock (name and/or stock symbol) in your notice. This allows United Way to quickly verify that the transaction was processed correctly, and ensures that you receive acknowledgment for the correct gift. Please send this information to Brian McCluskey.
If you do not use a broker, mail or deliver the stock to United Way of Larimer County (please send separate from the stock a signed Stock Power, but please do not "sell, assign or transfer" the stock to the United Way. The clearing agent cannot sell the stock in this form). We will send an immediate acknowledgement of the gift. We will issue you a tax deduction receipt (the average of the high and the low of the stock on the date of the gift) on the date the stock is transferred into one of United Way's accounts or received by us directly.
Contact United Way of Larimer County at 970.407.7000 regarding gifts of stock
