Are you holding stocks, bonds or other investment securities that you no longer need or that no longer fit your investment objectives? If so, they can be use as charitable gift—especially if they have increased in value (“appreciated”) since you bought them. A gift of appreciated securities offers a tax deduction, can help you avoid capital gains tax and will allow you to give a substantial donation at a considerably lower out-of-pocket cost.
EXAMPLE: Several years ago, you purchased 100 shares of XYZ Company for $10 per share for a total investment of $1,000. Since then, those shares have doubled in value and your holdings are now worth $2,000. If you give those appreciated securities to The Arc as a charitable gift, you can deduct the full current value of the shares ($2,000) even though your out-of-pocket cost is only $1,000. You'll also avoid the capital gains tax that you would pay if you sold the securities and then donated the cash.
APPRECIATED SECURITIES GIVING INSTRUCTIONS
Securities Held By A Brokerage Agent In Your Name
Your broker (including online brokerage companies) can transfer your securities directly to The Arc of Montgomery County. For transfer information, ask your broker to contact Tony Salah by mail at Merrill Lynch-The Salah Group, 11921 Rockville Pike, Rockville, Maryland 20852 or by phone at 301.230.6677.
Securities Held By You In Certificate Form
Stock or bond certificates can be sent by certified mail or hand-delivered directly to The Arc of Montgomery County at 11600 Nebel Street, Rockville, MD 20852. You will need the stock certificate and a stock power (available from any brokerage) for each certificate. Please be certain to mail the unendorsed stock certificate(s) in one envelope and the signed stock power(s) in a separate envelope.
For more information or to confidentially discuss a gift of securities, contact Doug Gaddis, 301.984.5777 x1244.
