It is heartening, to say the least, that calls are coming in from donors interested in contributing gifts of appreciated securities to their Donor Advised Funds and other funds here at the Community Foundation. How far we have come in one year!
Multiple Tax Advantages.
If you have securities which you purchased at least one year ago that have increased in value, you should consider the dual tax benefits associated with direct charitable donations of those securities.
Income Tax Deduction: You are eligible to deduct up to 30% of your Adjusted Gross Income for the value of the stocks or bonds you contribute. If your contribution makes you eligible for a tax benefit that exceeds this limit, you may carryover the deduction to use in any of the next five years.
Capital Gains Tax Avoidance: Capital gains taxes can feel like the penalty you pay for cashing out on your smart investing in the stock market. So before you sell that stock—especially to make a gift to charity—consider transferring the stock to the Community Foundation. If you have held the security for more than one year, you avoid paying tax on the difference between the purchase price and the selling price—the long-term capital gain.
So, even though you are able to take the tax deduction for the fair market value of the appreciated security that you donate, you avoid the capital gains tax liability that would have attached if you had sold the security to contribute cash. That’s a double benefit!
It’s easier than you think.
Simply notify your financial advisor that you would like to initiate a gift to the Community Foundation. Supplying your broker with the instructions listed below will make the transaction a smooth one. The Community Foundation also maintains accounts at most of the major brokerage firms if it is more convenient and expeditious for your broker to simply make a transfer to the account already held by the Community Foundation at their firm.
If you have any questions about making a gift to the Community Foundation, please call our Senior Vice President, Finance and Operations, Mary Meyer, at (315) 883-5533 or contact her by email at mmeyer@cnycf.org.
Stock Transfer Instructions
Provide your broker the following information to transfer securities to the Community Foundation: DVP #0418; Morgan Stanley Smith Barney; Account # 687-11449-18-005; Central New York Community Foundation, Inc. Please contact Mike or Ted Rulison at Morgan Stanley Smith Barney at (315) 448-3400 with information on securities being transferred.
Call (315) 422-9538 or email us when a stock transfer is in process, along with the name and number of shares and the fund to which the shares should be credited. This will ensure that the securities are properly processed.
If you have assets that may require additional steps to facilitate, such as mutual fund shares, shares in a closely-held business, or shares of stock in certificate form, please contact Mary at (315) 883-5533, or at mmeyer@cnycf.org for additional information.