Making a Donation of Stock

Did you know that you can donate stock to a charity instead of cash? If your stock has appreciated in value then you might want to consider making a charitable gift of stock.

Benefits for the Giver:
Two potential income tax advantages include:

Charitable deductions- for long term stocks you may deduct the fair market value of the securities and the time of the contribution. For short term stocks your charitable deduction is limited to your cost basis rather than the stock’s fair market value.
Avoidance of taxation on capital gains that would result if you sold the stock.

Benefits for the Charity:

The transfer of appreciated stock will provide increased tax benefits, giving more to the charity at less of a cost to the giver.
Charitable organizations registered with the Internal Revenue Service as a 501(c)(3) are not taxed when they sell stock therefore, no one pays taxes.

To make the most out of the potential tax benefits, it is not advised to give a stock that has lost value. If your stock has lost value, you may want to sell the stock first and then donate the proceeds of the sale to the charity. This allows you to deduct both a capital loss and charitable contribution. For more information on donating stocks: http://www.ascensioncapital.com/articles/8-charitable_planning/2-assets_gifted/Donating%20Stock%20to%20Charity.pdf

Instructions for Stock donations to United Way Monterey County

Direct all stock donations to: Morgan Stanley Smith Barney

ATTN: Robert Mendonsa

1418 South Main Street, Suite 200

Salinas, CA 93908

(831) 757-6201

Account number: 593-10850-12 514

For transfer to: United Way Monterey County

60 Garden Court, Suite 350

Monterey, CA 93940

(831) 372-8026

Please notify United Way Monterey County of all stock donations prior to transfer. Include name of donor, stock name, and number of shares being transferred. Please send information to Sharon Lagana, CFO, at slagana@unitedwaymcca.org or by calling 372-8026, x101.