BENEFITS OF MAKING A STOCK TRANSFER CONTRIBUTION
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 through United Way of Greater Williamsburg, 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.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%. |
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.One Receipt for Gifts to Many Charities You will receive one tax receipt for the total value of your gift while retaining the ability, through United Way of Greater Williamsburg, to distribute part of your gift to a variety of non-profit organizations or United Way of Greater Williamsburg priority areas that you care about.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. |
*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. Gifts of stock will be liquidated when received, and brokerage fees will be deducted from the gross proceeds. The net proceeds will be disbursed to your charities.
|
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 the matters.
STOCK DONATION PROCEDURE
Our United Way has accounts at the following brokerage firms:
| Brokerage | Contact | Telephone # |
| Wells Fargo Advisors, LLC | Kathryn Jenkins, RP®,AAMS® | 888-465-8422 |
| Davenport & Company, LLC | BB Munford, III | 804-780-2006 |
If you have an account at any of the above noted firms, the easiest way to donate stock is to have your broker transfer your stock gift from your account to one of our accounts with the above firms. Please contact Jim Cooley, COO to notify us of your impending gift at 757-253-2264 or jim.cooley@uwgw.org.
If you have or use a broker from a firm other than those noted above, please have your broker contact Jim or either broker noted above to alert us re: the transfer in progress.
If you do not use a broker, mail or deliver the stock to Jim’s attention (a signed Stock Power should be sent separately from the stock please), but please do not “sell, assign or transfer” the stock to the United Way (our broker informs us the clearing agent cannot sell the stock in this form). We will send an immediate acknowledgement of the gift.
Note that on the date of the gift (the date the stock is transferred into one of the United Way accounts or the date the stock is received by us directly) 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).
Thank you and do not hesitate to call if you have any questions.
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