Donating Securities – A Tax-wise Year End Gift
A gift of appreciated securities to Guiding Eyes for the Blind is a wonderful way to support our renowned guide and service dog programs. If you have owned the securities (stock, bonds or mutual funds) over a year, you will be entitled to a tax deduction for their full value—and you will avoid capital gains tax on the growth, too. The tax savings may even enable you to make a larger gift than you originally thought possible.
A simple example: Mary is contemplating a $10,000 gift to Guiding Eyes for the Blind. She is considering writing a check to Guiding Eyes for $10,000 and knows her cash gift will yield a $10,000 deduction. She owns publically-traded stock now worth $10,000 that she bought years ago for $3000. Mary’s stock gift will also generate a $10,000 deduction — and because she has held the stock for more than a year, she will not pay capital gains tax on the $7000 growth.
Delivering and valuing the securities: A gift of securities is complete (and tax deductible) only when the donor has unconditionally given up control of the securities to the charity or its agent. The value of publically-traded stock for gift purposes is the average of the highest and lowest selling price per share/unit on the gift date.
Securities Held In Brokerage Account: If the securities are held in a brokerage account, you should instruct your broker in writing to transfer them electronically to the broker for Guiding Eyes. (REMEMBER: DO NOT DIRECT YOUR BROKER TO SELL THE SECURITIES AND TRANSFER THE PROCEEDS TO GUIDING EYES.)
The gift is complete when the securities are received in our account. Please contact Ms. Susan Ludwig, Director of Accounting Services at Guiding Eyes, prior to the transfer so that you will receive the necessary stock transfer instructions and a proper acknowledgement for your gift. She can be reached at (914) 243-2253 or email@example.com.
Securities Held in Certificate Form: You may either hand deliver or mail the securities to Guiding Eyes. You must also provide Guiding Eyes with a fully-executed stock power to complete the gift. If you mail the securities, please be sure to send the stock power in a separate envelope for security reasons. The delivery date is the gift date if you personally deliver the securities and stock power to Guiding Eyes. If you separately mail the securities and stock power to Guiding Eyes, the gift date is the latter of the two postmark dates.
Securities and Life Income Gifts: There may be substantial tax benefits for establishing a charitable gift annuity or charitable remainder trust with appreciated securities. Please contact Gail Resnikoff for more details.
If you have questions or would like more information about gifts of securities, please contact Nancy Lothrop or Gail Resnikoff:
Senior Director of Development
Director of Planned Giving
Guiding Eyes for the Blind
611 Granite Springs Road
Yorktown Heights, NY 10598
Please remember that charitable gift planning requires careful consideration. The foregoing is intended to provide general information only, and does not constitute, tax, financial or legal advice, which only may be obtained through consultation with your professional advisers.