Take stock in United Way’s cost-saving ideas
You can realize two savings by contributing stock as a gift to United Way:
- A charitable deduction:
Federal law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income.
- Avoiding capital gains tax:
Stock contributors may have no tax liability on the difference between what they paid for the donated stock and its current market value; i.e. there may not be tax on the capital gains.
Here’s how it can work for you:
You decide to make a major gift to United Way. Payroll deduction has always been easy, but this year, you decide to see if a gift of appreciated securities might be more cost effective for you. Assume you purchased 100 shares of XYZ Corporation in 1983 for $1,000 and the shares are worth $2,500 today, for a gain of $1,500. If you sell the stock and donate $2,500 to United Way you will have an itemized deduction for $2,500 but you will also owe appropriate taxes on the $1,500 gain. However, if you donate the stock directly to United Way you still have an itemized deduction for $2,500 but will not owe any taxes on the gain, a saving of several hundred dollars.*
*It is always recommended that you consult your financial advisor, tax advisor and/or attorney to see how a gift of securities can benefit you. For additional information, please contact us at 217.726.7000
Ways To Donate Stock
Stock can be donated to United Way of Central Illinois in several different ways:
- Easiest and best way – If the stock you wish to donate is held in your account at your brokerage firm, the broker can be instructed to electronically transfer the securities to a brokerage account United Way of Central Illinois maintains at:
Wells Fargo Advisors
2941 Greenbriar Drive • Springfield, IL 62704
NOTE: You should request that your broker call Mr. Zach Bromley, Senior Vice President – Investment Officer, at Wells Fargo Advisors to advise him of the transfer prior to the actual transfer. It is also important United Way of Central Illinois be advised of your name so the gift can be appropriately recorded and your donation acknowledged. For tax purposes, the gift is complete on the date of transfer to United Way of Central Illinois’ account.
- If the stock certificates are in your possession, you can send the shares to the transfer agent of the company in which you hold shares and request they transfer the stock into the name of United Way of Central Illinois. Once transferred, they can be forwarded to the United Way of Central Illinois. In most cases, the transfer agent will forward the shares on your behalf. Again, it is important United Way of Central Illinois be advised of your name so the gift can be properly recorded and your donation acknowledged. For tax purposes, the gift is complete on the day the transfer takes place.
- If the stock certificates are in your possession, you can send the unendorsed certificates and a signed and notarized stock power to United Way of Central Illinois in separate envelopes. For tax purposes, the gift is complete on the date of the postmark on the later envelope. The stock power is available from any broker. The stock power indicates your intention to transfer the shares of stock. This document must be notarized by a Notary Public to authenticate your signature. You should also include a cover letter with your specific intent with respect to the shares of stock enclosed. Again, this will enable United Way of Central Illinois to handle the stock according to your wishes, record the gift in the proper account and acknowledge your donation.
- Stock certificates can be personally delivered with all the necessary endorsements to United Way of Central Illinois, 1999 Wabash Avenue, Suite 107, Springfield, IL 62704. For tax purposes, the gift is complete on the day of delivery. It is always recommended you consult with your financial advisor, tax advisor and/or attorney.