Gifts of Securities

 

 

Publically traded securities are great assets to give. They are easily valued without an appraisal, and easy to transfer. Donating appreciated securities before they are sold typically results in a tax advantage. A tax deduction is normally allowed based on the market value at the time of the gift. Since the deduction is based on current value, rather than cost, no tax is paid on the appreciation.

 

Your financial planner or tax advisor can assist you in evaluating tax advantages.

 

 

 

How To Donate Stock

 

If your shares are held in a brokerage account:

 

Instruct your broker to transfer electronically the specified shares to:  

DTC #: 2039

Brokerage: SEI Private Trust Co.

Account #: 11157-C  for Franklin Street Trust

For Benefit of: Northern Surry Foundation for Better Health, Inc.

Account #: 689205104268

 

Please Note: The donor’s name does not appear when stock is transferred electronically. Please send our office a copy of the transfer instructions, or call our office and let us know what stock and how many shares to expect. This will ensure your gift is properly recorded and acknowledged in a timely manner.

 

If you are holding paper stock certificates:

 

  1. Please send the certificates without any endorsement or assignment via U.S. Postal Service or a delivery company (e.g., Fed Ex), along with a letter stating the purpose of your gift, to the above address.

  2. In a separate envelope, please send one endorsed stock power form per certificate to the above address. You will need to obtain a guarantee of your signature on the stock power form. (This is different than having a document notarized.) Most banks and brokers provide a signature guarantee service. Please endorse each form exactly as your name(s) appear on the front of your certificate(s). You do not need to include any other information on the form.

  3. The stock certificates will not be negotiable until we have received both envelopes.

 

If you have any questions, please contact Matt Linville at 336-783-8484.

 

 

 

Gift Valuation

 

Because the market fluctuates, the value of your gift, for tax purposes, will be the mean (average) of the high and the low trades on the date the gift was received.  

 

If the shares are transferred electronically, the gift will be valued on the date the securities are received into the Foundation's account.  

 

If the stock certificates and stock power form are sent through the mail, the gift date will be established from the later postmark of the two envelopes. (They must be sent separately.) Gifts delivered by a delivery company will be credited on the day the second envelope is received.

 

 

 

Donating Mutual Funds

 

Gifts of appreciated mutual fund shares can provide you with substantial tax benefits in the form of charitable deductions, generally for the full fair-market value of the shares, as well as the avoidance of capital-gains taxes. Since the procedure for making charitable contributions varies from one mutual fund company to another, we suggest that you or your broker contact contact Matt Linville at 336-783-8484 about this type of gift.