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Benefits of Making a Stock Transfer Contribution

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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 Coastal Fairfield County, 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.

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.

 

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 Coastal Fairfield County, to distribute part of your gift to a variety of nonprofit organizations or United Way of Coastal Fairfield County priority areas that you care about

 

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%.
*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 THESE MATTERS.

 

Stock Donation Procedure

 

United Way of Coastal Fairfield County has accounts at 2 brokerage firms. If you have an account at any of the below noted firms, the easiest way to donate stock is to have your broker transfer your stock gift from your account to the applicable account noted below.

Brokerage

Account #

DTC #

Contact

Assistant

Telephone #

People's Securities

220-18834-16

158

Ron Nolting

Dahlia Rivera

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Merrill Lynch

848-02177

5198

Steve Nussbaum

Luis Guitierrez

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If you do not use a broker, mail or deliver the stock to Hilda Johnson’s attention (please send separate from the stock a signed Stock Power, but please do not “sell, assign or transfer” the stock to the United Way. The clearing agent cannot sell the stock in this form).  We will send an immediate acknowledgement of the gift.  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) on the date the stock is transferred into one of United Way’s accounts or received by us directly.

United Way of Coastal Fairfield County contacts regarding gifts of stock:

Hilda Johnson, Chief Financial Officer
(203) 339-6322 or email at hjohnson@unitedwaycfc.org

Marjolijn Wijsenbeek, Executive Vice President
(203) 339-6338 or email at marjolijn@unitedwaycfc.org