A Tax-Savvy Way to Benefit from Assets That Have Grown
Securities and mutual funds that have increased in value and been held for more than one year are popular assets to use when making a gift to Guiding Eyes for the Blind. Making a gift of securities or mutual funds offers you the chance to support our work while realizing important benefits for yourself.
When you donate appreciated securities or mutual funds in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.
Securities are most often used to support our work in the form of:
- An outright gift – when you donate securities to Guiding Eyes, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.
- A transfer on death (TOD) account* – by placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime. *State laws may vary. Consult with your bank or investment advisor.
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 publicly-traded stock for gift purposes is the average of the highest and lowest selling price per share/unit on the gift date. Mutual funds are valued based on the “net asset value.”
Donating Securities Held in a 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. NOTE: To avoid capital gains on appreciated securities, please do not direct your broker to sell the securities and transfer the proceeds to Guiding Eyes.
Please contact Ms. Susan Ludwig, Controller, at Guiding Eyes, at (914) 243-2253 or email@example.com prior to the transfer to receive the necessary stock transfer instructions and a proper acknowledgement for your gift. The gift is complete when the securities are received in our account.
Donating Securities Held in Certificate Form
You may either hand deliver or mail the securities to Guiding Eyes and provide Guiding Eyes with 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 via the USPS, the gift date is the latter of the two postmark dates. Gifts sent by any other delivery service are deemed complete on the date received by Guiding Eyes.
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.
Questions? For more information about gifts of securities, please contact Rebekah Cross or Gail Resnikoff:
Rebekah Cross, Special Gifts Officer
Gail Resnikoff, Director of Planned Giving
Guiding Eyes for the Blind
611 Granite Springs Road
Yorktown Heights, NY 10598
The foregoing is intended to convey general information only, and does not constitute legal, tax, or financial advice. We strongly suggest that you consult with your professional advisors before making a charitable gift.