If you are planning to make a gift of stock, please contact the Eileen Edel in the Development office, eedel@fhcrc.org, (206) 667-5569, or at (800) 279-1618.
We will provide you with an information sheet and a sample letter to facilitate the transfer. Please note that your name will not accompany the electronic transfer of shares, so it is very important that you notify our staff of your intent. They will then notify our broker or mutual fund company to expect a gift from you.
If you hold stocks and mutual funds that have increased substantially in value since the time of purchase, you may face significant income taxes. To reduce these taxes, consider either a gift of cash, appreciated stock or mutual fund shares.
When you give appreciated stock, you receive two benefits. If you write a check for $10,000 to your favorite charity, you will receive a deduction of $10,000. Similarly, if you have stock purchased for $2,000 with a value of $10,000 and give that to charity, you also receive a deduction for $10,000.
However, with the stock gift you also benefit from a bypass of capital gain. If you were to sell the $10,000 block of stock yourself, there would be $10,000 in sale proceeds less the $2,000 basis, for a long-term capital gain of $8,000. This would subject you to tax decrease at 20% and, in many states, an additional state tax payment.
Since a charity does not pay tax, you may give the stock to the charity and bypass the gain. The charity simply sells the stock without paying tax and has the full $10,000 available. This method enables you to receive an income tax deduction for $10,000 and added capital gains tax savings, since you paid no tax on the $8,000 capital gain.
If you are planning to make such a generous gift please contact the Development Office at (206) 667-4399 or (800) 279-1618 for information about our brokers and mutual fund accounts. We will provide you with an information sheet and a sample letter to facilitate the transfer. Please note that your name will not accompany the electronic transfer of shares, so it is very important that you notify our staff of your intent. They will then notify our broker or mutual fund company to expect a gift from you.
The value of your gift will be calculated by using the mean value of each share on the date the shares arrive in our brokerage or mutual fund account. If you are concerned about the timing of your gift, please be sure to work closely with your broker or mutual fund company to insure that the shares are transferred in a timely manner.
