Gifts of Stock
Gifts of appreciated long-term stock are a smart, tax-wise way to make a direct contribution or fund a trust or gift annuity. Such gifts entitle the donor to two financial benefits.
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No tax needs to be paid on the gain.
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The full fair market value on securities on the date of the gift deductible as an itemized charitable deduction for federal income tax.
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In order to qualify as long-term holdings, stock must be held more than one year. Since the long term holding period is subjected to change, contact your tax advisor for current rules.
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Contributors who give long-term stock can claim the resulting charitable contribution deduction up to 30 percent of their adjusted gross income in the gift years, with carry-over of any excess deduction for up to five succeeding tax years.
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Valuation of Gifts of Stock
The gift value is the average of the high and low selling price quoted for securities regularly traded on a major exchange on the date of the gift. For over-the-counter securities, the average of the closing bid and the closing asked for price on the date of the gift is the gift value. Since the value of publicly traded stock varies from day to day based on trading activity, the actual date of the gift determines the exact value of the stock.
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How to Make an Outright Gift of Stock via Electronic Transfer:
Giving stock through electronic transfer is the easiest when a donor maintains holdings in a brokered account. Edward Jones, Rockville, is the Foundation's clearinghouses for electronic security transfers. Each brokerage firm has a specific number.
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Please contact the Foundation office before the transfer so that they can make arrangements with Edward Jones to receive the stock as the Foundation cannot sell an unidentified security. The Foundation will then contact you to receive specific information as to the purpose of your gift.
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Mutual Fund Gifts: If you are transferring shares of a mutual fund, please contact the Parke County Community Foundation office mentioned below for specific instructions and procedures.
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Edward Jones Transfer Information:
Account Name: Parke County Community Foundation
Account Number: 535-07809-1-1
Attn: Monti Byers
Reference: Donor's Name and Contact Information
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