Make a Gift of Stocks

Appreciated stock can be the ideal choice for donors who want to make an impact with their charitable giving at a substantially reduced cost. The secret is in the double tax benefit.

Securities Held by Your Bank or Broker

You or your broker/bank should kindly notify Kathy Colello kcolello@holyfamilyretreat.org or 860.760.9716 in Holy Family’s Development Office to be sure your gift is identified as yours.

Here are gift instructions to provide to your bank or broker:

I wish to make an irrevocable gift to Holy Family of "x" shares of "XYZ" Corporation. Please transfer the stock to Holy Family via DTC as follows:

Broker: Charles Schwab
DTC #:  0164
Account #:  6908-5977
Client Name: Passionist Fathers of CT, Inc.
(AKA: Holy Family Passionist Retreat Center)

Which Stocks Are Best to Give?

There are no definite rules for selecting stock for a charitable gift.

The best choice will depend on your portfolio and your investment goals. But here are a few general rules...

  1. Look for a stock with the greatest amount of appreciation. Such a stock will give you more leverage for the untaxed gain.

  2. If you try to stick to a specific ratio for your portfolio (i.e. 40% stocks, 40% muni bonds, and 20% cash), you could choose to give a certain stock so you can reposition your investments, balance your overall position, and receive valuable tax relief.

  3. Select a stock that may have lowered or cut its dividend. All of these options require some planning, so consult your investment and tax advisors and let them know about your philanthropic goals.

How Does the Double Tax Benefit Work?

Suppose you decide to give us 100 shares of stock with a current fair market value of $5,000. You bought the stock for only $1,000 more than a year ago. Today, you can deduct the full $5,000 on this year’s income tax return. The $4,000 capital gain is not taxed, even though it has “inflated” your charitable deduction. Avoiding the capital gain makes it possible to give stock at a lower actual cost to you rather than making a cash gift.

Do You Hold Securities in Certificate Form?

If you hold securities in certificate form, you will need to mail two envelopes separately to complete your gift. In the first envelope, place the unsigned stock certificate(s). In the other envelope, include a signed stock power for each certificate. You may obtain this power from your broker or bank. Please remember to use certified mail.

More on Gifts of Stocks and Bonds

There are special rules for valuing a gift of stock. The value of a charitable gift of stock is determined by taking the mean between the high and low stock price on the date of the gift. Mutual fund shares are valued using the closing price for the fund on the date of the gift.

Contact Us

If you have any questions about gifts of stocks and bonds, please contact us. We would be happy to assist you and answer any questions that you have.

Dawn Fleming, CFRE
Director of Donor Relations and Planned Giving
Holy Family Passionist Retreat Center
303 Tunxis Road
West Hartford, CT  06107
203-232-0444
dfleming@holyfamilyretreat.org