Most people think of writing a check when they want to make a charitable gift. But you might find that giving appreciated securities – stocks, bonds, and mutual fund shares that have grown in value since they were originally purchased – can help you meet your charitable goals, while also creating substantial tax savings.
Donating Stock for Social Justice
Maria owns stock that she bought for $2,500, which has grown in value over the last few years and is now worth $10,000. Maria is planning a gift to MRG Foundation and is thinking about how she can make the biggest difference. Here’s what it looks like if she gives the stock directly to MRG versus selling the stock and donating the proceeds:
|Give the Stock Directly||Sell the Stock, Give Proceeds|
|Market Value of Stock:||$10,000||$10,000|
|Capital Gains Tax (15%):||– none –||$1,125|
|Value of Gift to MRG:||$10,000||$8,875|
|Charitable Tax Deduction (33%):||$3,300||$2,929|
|Total Tax Savings:||$3,300||$1,804|
By giving stock directly to MRG Foundation, Maria is able to make the biggest impact and have significant tax savings. A few other considerations:
- If, through gifts or inheritance, you’re holding stock that doesn’t alight with your values (e.g. oil, armaments, tobacco), you can put them to work for social justice. MRG divests from such stocks and directs the resources toward critical social change work.
- If you’re interested in supporting a number of grassroots organizations, you can use a stock gift to MRG to set up a donor advised fund.
- If you’re in a tax bracket higher than 33%, the tax savings – and the impact of your gift – will be even greater.
Giving Securities to MRG Foundation is Easy
Securities must be received by MRG Foundation in the calendar year for which you intend to take the tax deduction (in other words, by December 31st). It is best to allow six weeks for the transfer.
Your broker will want to know the following information:
MRG’s Schwab account #: 6112-9067
DTC #: 0164
Tax ID #: 93-0691187
If you have an investment account at Charles Schwab or another brokerage: write a letter of instruction to your broker with your directions to transfer the securities to MRG Foundation’s account at Schwab.
If you are gifting mutual fund shares: the mutual fund will usually be able to set up a courtesy account for MRG Foundation. Ask the mutual fund or your investment advisor to send the new account forms to MRG Foundation. Then prepare a letter of instruction to the mutual fund, asking them to transfer the designated number of shares to the new MRG Foundation account, at no sales fee.
If you hold your own stock certificates: you can safely transfer those certificates to MRG Foundation’s investment account at Charles Schwab with the above account information.
Have questions and want to make a stock donation to MRG Foundation? Contact Carol Tatch, MRG’s Donor Relations Director: firstname.lastname@example.org or 503-289-1517
Please Note: The information provided here to help you think about your charitable giving options. Every donor’s financial and tax situation is unique, so this shouldn’t be considered legal or tax advice. If you’re considering a stock gift, be sure to consult with your tax and financial advisors.