For many of our supporters, it makes tax sense to contribute appreciated securities (stocks, bonds and mutual funds held over a year) to Guiding Eyes rather than cash. A $10,000 cash gift and a gift of appreciated stock worth $10,000 generate the same tax deduction—and both result in a gift of the same generous amount to our organization. But the stock donation has another benefit — because you do not recognize or pay tax on the capital gain attributable to the stock’s growth when you transfer it to Guiding Eyes, you can leverage a larger donation than you could make with a cash gift.
An Example: Judith would like to make a $10,000 gift to Guiding Eyes for the Blind. She is considering writing a check to Guiding Eyes for $10,000. Judith also has stock now valued at $10,000 that she bought many years ago for $2,400. If she transfers the stock to Guiding Eyes, Guiding Eyes will receive a gift worth $10,000 for its mission and Judith will be entitled to claim a $10,000 charitable deduction for her gift, all at an out-of-pocket cost to Judith of $2,400. No capital gains tax will be payable on the $7,600 growth in the stock’s value ($10,000 value less $2,400 original cost = $7,600). Both Judith and Guiding Eyes benefit from her “buying low and gifting high.”
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. Please read on for information on delivery dates – this information is especially important for year- end gifts. 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. 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. (REMEMBER: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 firstname.lastname@example.org prior to the transfer so that you will 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. 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 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.
If you have questions or would like 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.