Since the peak of the recession in 2007, stocks have almost doubled in value, sometimes going down and back up like a seesaw in the face of the current economic turbulence. If you're fortunate enough to own stock that has gone up in value since you purchased it, there are benefits in making a gift of stock to the Davis Phinney Foundation in support of our programs or research. Your gift will not only help thousands of people and families affected by Parkinson’s but may enable you to reap substantial tax savings.
Giving appreciated stock makes sense for many reasons. We frequently work with donors who see the value of our programs, enjoy being part of our philanthropic community and the Leadership Circle, and realize the tax incentives they get by donating stock or securities.
Gifts of stock and other securities are a popular way to support the Foundation. Whether you’re interested in supporting our quality of life research program, the Every Victory Counts® manual, or wish to provide general support for our educational work, a stock gift is an easy and tax-efficient way to give.
Gifts of securities include not only publicly traded stocks like Microsoft or Wal-Mart, but gifts of mutual funds, Treasury bills and notes, corporate and municipal bonds, and stock in non-publicly held companies. It’s extremely easy to give stocks and other securities that are marketable—that is, are sold to the public on stock exchanges or over-the-counter markets. No matter how large the donation, there is no need to obtain an appraisal. The value is simply based on what the stock or other security sold for on the exchange on the day of the donation (the average price between the highest and lowest quoted selling prices on the donation date is used). Most donors simply work through their broker, financial advisor, or establish a charitable gift fund through Fidelity, Schwab, or other investment services.
Here are four reasons why donating in this way might be the right move for you, too:
- It feels good to make a gift and be a part of a philanthropic community in support of a cause you care about. We love to share periodic updates about our work and your gift in action!
- You reap immediate tax benefits. When you donate stock to charity, you avoid capital gains taxes. That means when you donate a stock that has appreciated for over a year, you’re actually able to give 20% (the maximum federal capital gains tax rate) more than you would have if you sold the stock on your own and then donated cash.
- You may be able to reduce capital gains in the future. The longer you hold on to a stock, the more likely you are to see capital gains tax when you sell. If you donate some of your appreciated shares now and then buy more, you’ll be resetting your cost basis at the current and higher price.
- It’s easy to do and hassle-free. Donating stock can be completed in four simple steps.
Here’s how it works:
Step 1 – Contact your broker or investment advisor to gift shares of stock to the Davis Phinney Foundation. Stock donations are processed via our account at Charles Schwab. Please notify Claire Herritz if you are making a gift of stock or if you would like to direct it to a specific program area.
Step 2 - Once your stock (or other securities) are received, we give the order to sell the stock at the current market price.
Step 3 - We report the proceeds of the sale to you, provide a thank you letter describing how your gift makes a difference, and tax receipt.
Step 4 - You report/deduct the value of the gifted stock on your income tax form for the tax year it is donated. We recommend discussing your charitable giving with your accountant or tax professional to gain the maximum benefits.
Ready to Donate a Stock?
If you’d like to discuss gifts of stock or different tax-efficient ways to support the Foundation, email our Director of Development, Rich Cook, here.
Want More Practical Articles Like This?
Much more can be found in our Every Victory Counts® manual. It’s packed with up-to-date information about everything Parkinson’s, plus an expanded worksheets and resources section to help you put what you’ve learned into action. Request your free copy of the Every Victory Counts manual by clicking the button below.
Thank you to our 2020 Peak Partners, Amneal and Kyowa Kirin, with special support from Adamas, for helping us make printing, distributing, and shipping the Every Victory Counts manual for free possible.