Publicly traded appreciated securities that you have owned for more than one year can be transferred to AE911Truth. We then sell the securities and use the proceeds toward our mission. You receive an income tax charitable deduction based on the fair market value of the securities while also avoiding capital gains tax.
Benefits
- You receive an immediate income tax deduction for the fair market value of the securities on the date of transfer (even if you originally paid much less for them).
- You pay no capital gains tax on the transfer when the stock is sold.
- Giving appreciated stock can be more beneficial than giving cash. The "cost" of your gift is often less than the deduction you gain by making it!
Is this gift right for you?
A gift of appreciated securities is for you if…
- You're holding stocks, bonds, or mutual fund shares that have increased in value.
- You want to make a gift that doesn't affect your liquidity or cash flow.
- You want to make an outright gift or fund a gift that will first return lifetime payments to you and/or another beneficiary.
You want to diversify your assets to increase your income without having to pay the capital gains taxes that would result from a sale.
A $5,000 cash gift and a gift of $5,000 in appreciated securities both generate the same charitable deduction.
But if you use publicly traded stocks, bonds, or mutual fund shares that you have held for a year or longer to make your gift, you will receive an additional tax benefit: The IRS allows you to make your transfer to AE911Truth without recognizing capital gains on the appreciation. You can thus leverage a larger donation than you could make with cash — and receive a larger tax benefit — by "buying low and giving high."
Your gift of stock is valued, for tax purposes, at the mean of the high and low on the date the shares are received in our account. Mutual funds are valued at the "net asset value."
If you and your advisors are transferring assets at the end of the year, it is especially important to note the following.
- For stocks transferred through the U.S. Post Office, the gift date may be found in the postmark. (Stock certificates should be sent unsigned to AE911Truth with an executed stock power mailed under separate cover on the same day.)
- Gifts delivered by UPS, Fedex, or any other delivery company are credited, by law, on the day received by AE911Truth.
Important Tip: Don't sell the stock first. Even though you may give us the proceeds as a gift, the IRS will impose capital gains tax on your sale, wiping out the benefits of this arrangement.
FAQs
How do I arrange for a gift of my stock?
You can contact us so that we can assist you with transfer instructions. If you own securities in a brokerage account, we can help you set up an electronic transfer of the shares to our brokerage account. If you possess actual stock certificates, we can tell you how to sign the certificates over to us and fill out a stock power form.
What are the tax advantages of a gift of stock?
Assuming you are giving long-term (owned for 12 months or more) appreciated securities, you will receive a charitable income tax deduction equal to the fair market value of the shares. For common stock this is typically the mean value on the date that we take control of the shares you give. You will pay no capital gains tax. Gifts of stocks are deductible up to 30% of your adjusted gross income the year you make your gift. Any excess amount can be rolled over into the next tax year, for up to five additional tax years if needed.
Will you sell the shares I give you?
It is generally our policy to liquidate any donated stock shares very soon after receiving them, so that we can use the cash proceeds for our mutual mission.
Can I give closely held stock that I own?
In many cases yes, and considerable tax benefits can result. However, giving closely held stock is more complicated than giving publicly traded securities and may be subject to certain transfer restrictions. We stand ready to assist you with your gift intention. One prerequisite to our acceptance of a gift of closely held stock is that the business or the shares have had a recent qualified appraisal.
Please contact us if you have already included AE911Truth in your estate planning or if you are considering doing so. Our federal tax I.D. number is 26-1532493. You may want to download a copy of our confirmation of IRS tax-exempt status.