The gift of appreciated securities - stocks, bonds, or mutual funds that have grown in value - can be an easy way of making a contribution, one that may have tax advantages for you. You might even be able to consider a larger gift than you would have otherwise given - the size you wish you could make! The recommended minimum gift amount is $1,000.
Do I have to pay capital gains tax on the stock if I transfer it?
It depends on the organization to which you transfer the stock.
If you transfer long-term held stock to a 501(c)(3) charitable organization, such as the FCNL Education Fund (rather than selling the stock and giving the cash) you do not have to pay the capital gains tax on the appreciated value of the stock and you can take a charitable deduction for the full current value of the stock. (If you transfer stock that has not been held long-term, your deduction is limited to your original cost basis for the stock.)
A stock transfer to a nondeductible [501(c)(4)] organization, such as FCNL, also means that you do not have to pay capital gains tax although you are not eligible for a charitable tax deduction for the value of the stock itself.
How do I make a gift of stock?
For stock held in your brokerage account: This stock can be electronically transferred to either FCNL (not tax deductible) or the FCNL Education Fund (tax deductible).
If you are making a Mutual Fund transfer please inquire for a separate set of instructions, as these transactions are processed differently.
To make this gift of securities, call the FCNL Development Office (800-630-1330 x 2508) or email email@example.com. You will receive transfer instructions to pass on to your broker. Often the arrangements can be completed by telephone; this is one of the easiest ways of making a gift! Stock transfer instructions are also available here.
For stock for which you hold the actual stock certificates, you will need to take the following steps:
- Be sure to sign the certificates in the presence of a guarantor (your bank or brokerage can usually do this).
- On the back of the certificate there should be some blanks to fill in for transferring ownership. In the appropriate spaces and in the guarantor's presence, sign your name (or names, if joint) exactly as your name(s) appears on the face of the certificates.
- In the blank space between the words "appoint _________________ attorney," fill in "Charles Schwab & Company." The certificates are now nonnegotiable.
- Send the certificates to FCNL through the U.S. mail along with a letter stating your intent to give the named securities to FCNL or the FCNL Education Fund (please specify which). FCNL's postal address is 245 2nd St. NE, Washington, DC 20002.
- For gifts to be credited to you in the current calendar year, the electronic transfer from your account or the postmark on the transmittal of the stock certificates must be no later than December 31.
After we receive verification of the electronic transfer or receive the certificates, we will send you an acknowledgment letter showing the date and value at the time of transfer and whether the gift was to FCNL or the FCNL Education Fund. You can use this letter for your income tax records.
Questions? Contact Mark Antonucci at (800) 630-1330 x 2508 or by email at firstname.lastname@example.org