Gifts of Stock
Current tax laws make it possible for you to make a charitable gift of stock at a remarkably low after-tax cost. This tax savings is achieved in two ways. First, you pay no capital gains tax upon the transfer of stock to us. Second, you receive an income tax charitable deduction for the full fair market value of the stock on the date of the gift (assuming you have held the stock for longer than twelve months).
There are three commonly used methods for delivering a stock to BRCC:
- If you are delivering the stock to us through a broker, instruct your broker to hold the stock for our account; do not instruct your broker to sell the stock, either in your name or in our name, as this may affect capital gains tax liability. The date your broker transfers the stock into our account (BRCC Educational Foundation, Inc. Account # 1611-1731) controls the valuing of the gift. Your broker should contact: Wells Fargo Advisors - DTC #0141, A. Wesley Graves, VI - Managing Director-Investments, or Angela Moats - Senior Registered Client Associate at 540-801-3209 or toll free 1-800-879-9926. Your broker should notify Mr. Graves or Ms. Moats to provide BRCC with your name, any restrictions on the use of the gift, and the expected date of transfer. To further eliminate any errors in crediting your gift, it is important for you to notify the BRCC Educational Foundation Office at 540-453-2211 or 1-888-750-2722 ext. 2211 to describe the gift (# of shares of XYZ Company), provide the date of transfer and any restrictions on the use of the gift.
- If you are delivering the stock by hand, the best course of action is to sign a separate stock assignment form, which is often called a stock power, as opposed to endorsing the back of the stock certificate. Stock power forms are available from your banker or broker. If you cannot or do not wish to deliver the stock to us by hand at our office, we will arrange to meet with you at your home or office. The date of physical delivery to us controls the valuing of the gift.
- If you are delivering the stock by mail, we recommend that you send the stock certificate(s) and the signed stock power(s) in separate envelopes. We further recommend that the stock certificate(s) be sent by registered or certified mail, return receipt requested. Please enclose a cover letter providing your name, address, and telephone number along with any designated purpose for which the gift is being made. We will need a separate stock power form for each certificate of stock; be sure to sign the stock power(s) exactly as the name reads on the stock certificate. Do not fill in our name on the stock power. Stock power forms are available from your banker or broker. The date of the postmark controls the valuing of the gift, assuming the certificate(s) and stock power(s) are received in due course.
For stock regularly traded on a stock exchange, the charitable deduction is determined by using the average between the high and the low price on the date of the gift.