Benefits of Stock Transfer
Tax-Savvy Giving
Donate Appreciated Stocks, Bonds & Mutual Funds
Contributing stocks, bonds, or mutual funds that have appreciated over time is one of the most tax-savvy ways to give to the Community Foundation of Anne Arundel County (CFAAC). Not only does this method allow you to avoid paying capital gains taxes on the growth of these assets, but you may also be eligible for a charitable tax deduction based on their full market value. This means you can give more to a charity than if you sold the assets and then donated the cash after taxes.
Avoid paying capital gains tax on the sale of appreciated stock: By donating appreciated stocks, bonds, or mutual funds directly to CFAAC, you can bypass the capital gains taxes you would incur if you sold the assets first. This allows you to donate more of your investment without losing a portion to taxes, maximizing the impact of your gift.
Receive a charitable income tax deduction: When you donate appreciated securities, you may be eligible for a charitable income tax deduction based on the full market value of the asset, not just the original purchase price. This can help reduce your taxable income for the year, providing you with financial benefits in addition to your charitable giving.
Further CFAAC’s mission: Your gift of appreciated stock directly supports the mission of the Community Foundation of Anne Arundel County (CFAAC), enabling us to provide grants to local nonprofits and initiatives that make a lasting difference in the community. By contributing securities, you’re helping CFAAC continue to foster positive change across Anne Arundel County.
How to Donate
Should you wish to make a non-cash donation, CFAAC accepts gifts of appreciated stock for the benefit of this fund. To initiate this transaction, contact your broker with the number of shares of each security you wish to give. All gifts of stocks and bonds which are “DTC Eligible” can be transferred to CFAAC using the information below:
- Pershing, LLC Depository Trust Company (DTC) #0443
- For the credit to: Pershing, LLC #4S2117401
- Account name: The Community Foundation of Anne Arundel County
Prior to initiating a security transfer, please inform Kathy@cfaac.org of the security gift amount and the specific fund your gift will support to ensure that we process your gift properly.
More on Gifts of Stocks & 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.
Many people like you are making tax smart donations with appreciated stocks and bonds, qualified charitable distributions (QCD) from an IRA, or a variety of planned gifts. For more information, please email John@CFAAC.org or call 410-280-1102 ext. 103.