Encouraging Gifts of Stock

by William J. Moran, J.D., M.S.Ed.

Sample Language for Encouraging Gifts of Stock

How to Give Stock

Gifts of appreciated stock have significant tax advantages to the donor and we are pleased to receive stock gifts to advance our program. When you make a gift of appreciated stock, you receive two tax benefits:

(1) A deduction for the full market value of the securities, and
(2) Avoidance of the tax due on the capital gains.

If the securities are in your possession, we recommend that you send the unendorsed certificates by certified mail. In a separate mailing, please provide a stock power for each stock certificate you send us. Each stock power should be signed and signature guaranteed exactly as your name appears on the certificate.

If the securities are in your broker’s possession, please instruct that they be placed in a temporary account for us. We will provide the broker with our tax identification number.

The most important rule to remember is that the securities must be transferred into our name before they are sold. Please instruct your broker not to sell the securities until the transfer has been made.

It is important to communicate the exact date of transfer to establish the gift’s value in accordance with IRS regulations. For your income tax deduction, the value of the gift is the mean between the high and low market value on the transfer date.

If you have questions about any planned gift, please call __________________.

Want more articles like this delivered directly to your inbox? Sign up for our E-Newsletter.

© 2008 The Moran Company, “We find great nonprofit executives.” We specialize in searches for nonprofit executive directors, directors of development/fundraising staff, and other top nonprofit leadership. www.morancompany.com