Why
Give a Gift of Securities?
Giving a gift of securities lowers the effective cost of the gift to the donor, creating a win-win for both the donor and UCM. As with any cash gift, the donor can deduct the value of the gift from income taxes, to the full extent allowed by law. In addition, by giving appreciated securities, the donor avoids the capital gains tax that would have been incurred had the securities been sold outright.
For example, Mr. Jones purchased 1,000 shares of Acme, Inc. for $500 in 1995, which is now worth $1,000. If Mr. Jones donates the stock to UCM – instead of a cash donation – he can take a charitable deduction for the amount of the gift and avoid $100 in capital gains taxes, assuming a 20% capital gains tax.
Assuming a 36% tax bracket, Mr. Jones receives an income tax deduction of $360 – in addition to the $100 in capital gains taxes mentioned above – for a total tax deduction of $460, or 46% in this example. Thus, the effective cost of the gift is $640, while UCM receives $1,000 towards fulfilling its' mission of helping members of our community.
For example, Mr. Jones purchased 1,000 shares of Acme, Inc. for $500 in 1995, which is now worth $1,000. If Mr. Jones donates the stock to UCM – instead of a cash donation – he can take a charitable deduction for the amount of the gift and avoid $100 in capital gains taxes, assuming a 20% capital gains tax.
Assuming a 36% tax bracket, Mr. Jones receives an income tax deduction of $360 – in addition to the $100 in capital gains taxes mentioned above – for a total tax deduction of $460, or 46% in this example. Thus, the effective cost of the gift is $640, while UCM receives $1,000 towards fulfilling its' mission of helping members of our community.
How to Make a Gift of Securities?
1. |
Please contact
UCM's Development Officer at (703)768-7106 and notify
them of your intent. UCM will then fax or mail to you a form entitled
"Advanced Notice of Securities Gift." Please complete
this form and return to:
United Community Ministries Attn: Development Officer 7511 Fordson Road Alexandria VA 22306 or fax to: Attn: Development Officer (703)768- 4788 You may also print this form online  ,
complete and return it to the UCM Main Office at the address above. |
2. |
If the certificates
are held in a brokerage account, have your broker wire the certificates
to:
DTC 0226 Acct. No. A1F-498688 Contact SunTrust Securities at (703)335-0427 |
3. |
If you possess
the stock certificates, do not endorse them. Send the
certificates by registered mail to: United Community Ministries Attn: Development Officer 7511 Fordson Road Alexandria VA 22306 Enclose a cover letter stating your intent to donate the stock to UCM, as well as a description of the type of stock donated (name and class) and the number of shares. Send separately a signed “stock power” form (you can call UCM to receive a copy of this form) for each certificate with the name of the issue filled in and the signature guaranteed by a broker or officer of a national bank. Please do not fill in our agency name on the stock power form as this can hinder us from selling the stock in a timely manner. |
4. |
If you wish
to transfer securities such as proprietary mutual funds, please
contact our Development Officer at (703)768-7106 for information.
These funds are generally not transferable to UCM's SunTrust account. The process generally requires that you open an account in the name of United Community Ministries or UCM. UCM in turn sells the shares in that account and has the company remit the proceeds. We will be happy to assist you in this process. |
|