Gifts of Stock or Securities
Securities and mutual funds that have increased in value and been held for more than one year are popular assets to use when making a gift to The Exceptional Sidekick. Making a gift of securities or mutual funds allows you to support our work while realizing significant benefits for yourself.
A Tax savvy way to benefit from assets that have grown
When you donate appreciated securities or mutual funds in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.
Securities are most often used to support our work in the form of:
- An outright gift – when you donate securities to The Exceptional Sidekick, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.
- A transfer on death (TOD) account* – by placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime. *State laws may vary. Consult with your bank or investment advisor.
Delivering and valuing the securities
A gift of securities is complete (and tax deductible) only when the donor has unconditionally given up control of the securities to the charity or its agent. The value of publicly-traded stock for gift purposes is the average of the highest and lowest selling price per share/unit on the gift date. Mutual funds are valued based on the “net asset value.”
Donating securities held in a brokerage account
If the securities are held in a brokerage account, you should instruct your broker in writing to transfer them electronically to the broker for The Exceptional Sidekick. NOTE: To avoid capital gains on appreciated securities, please do not direct your broker to sell the securities and transfer the proceeds to The Exceptional Sidekick.
Please contact us prior to the transfer to receive the necessary stock transfer instructions and a proper acknowledgement for your gift. The gift is complete when the securities are received in our account.
Donating securities held in certificate form
You may hand deliver or mail the securities to The Exceptional Sidekick and provide The Exceptional Sidekick with a fully executed stock power to complete the gift. If you mail the securities, please send the stock power separately for security reasons. The delivery date is the gift date if you deliver the securities and stock power to The Exceptional Sidekick. If you mail the securities and stock power separately to The Exceptional Sidekick via the USPS, the gift date is the latter of the two postmark dates. Gifts sent by any other delivery service are deemed complete on the date received by The Exceptional Sidekick.
The above is intended to convey general information only, and does not constitute legal, tax, or financial advice. We strongly suggest that you consult with your professional advisors before making a charitable gift.