Stocks and Securities

Gifts of appreciated property have been considered the “best value” in charitable giving. That is because there are multiple benefits to making a gift of this type, including a charitable tax deduction and you are generally able to avoid paying capital gains tax on the increase in value of assets*. 

SIMPLE STEPS FOR GIVING A GIFT OF SECURITIES TO UNITED WAY 

If you would like to make a gift of stock to Trident United Way, please click here for broker information.  It is a simple, straightforward process.  

You can call or write to your broker, and ask your broker to initiate a "broker to broker" transfer.   You would instruct your broker to donate the stock directly to Trident United Way.

Your broker would transfer the securities directly to the United Way's account. It is important that the securities be transferred to United Way's account prior to being sold in order to maximize benefits.

*It is recommended to consult with your tax advisor on tax related questions.

Your gift of stock does more when you give to Trident United Way.

For a seamless gift transfer, please connect Bridget Bush, CFO of Trident United Way, directly with your financial advisor allowing for open communication and confirmation of transfer and receipt of stock or mutual fund shares. Bridget Bush can be reached at bbush@tuw.org, 843-740-7746 or 843-696-5648.

Factors to consider

Definitions

Long-term property is property that has been held for longer than 12 months. Property held less than 12 months is considered short-term property. There are significant benefits to gifts of long-term property, including a charitable deduction based on the fair market value of the stock and the ability to avoid paying tax on capital gain. Depreciated stock is an asset that has lost value since it was purchased and generally should not be gifted.

 

Publicly held or closely held stock

Stock can be either publicly held or closely held. Publicly held stock is traded on an exchange and can be purchased by anyone. It is usually easy to value, with market prices printed daily in financial publications. Closely held stock is typically owned by a few individuals, often family members. It is more difficult to value and is not freely traded. For charitable gift purposes, either can be donated.

 

Date of gift

When you contribute either certificates or transfer stock from a brokerage account, the date is easy to control. However, if you elect to have shares re-registered in the name of Trident United Way, the date is uncertain due to the time required for re-registration.

 

Valuing the Gift- Your Charitable Deduction

When you give long-term appreciated stock that is publicly traded to Trident United Way, you receive a deduction for the fair market value*. That value is the “mean market value,” which is the average of the high and the low price on the date of gift. Closely held stock usually requires an independent appraisal to determine value. Gifts of appreciated stocks are deductible up to 30 percent of your adjusted gross income in the year of the gift and if the amount of the deduction exceeds that amount, you may carry your remaining deduction forward for up to five years in the future.

 

Claiming Your Deduction

You must itemize your tax return to claim any charitable deduction*. You should file a form 8283 with your tax return to claim your deduction, completing section A of that form. For gifts of publicly traded securities, the charity does not need to sign the form.

 

*It is recommended to consult with your tax advisor on tax related questions.