Publicly traded securities are the most common form of noncash charitable gifts. You may find that securities are the most attractive assets to give, because they are often highly appreciated, easily transferred, and in most cases, easily valued for deduction purposes without the need for a formal appraisal. The most common forms of securities gifts are shares of stock, bonds, and shares of mutual funds.
The typical donor:
- Holds securities that are highly appreciated in value.
- Holds publicly traded securities.
- Wants to transfer securities prior to sale.
Gifts features and benefits:
- Immediate income tax deduction.
- Deduction based on fair market value.
- Avoidance of capital gains taxes.
- Gift can be timed to match changes in the market.
How Do I Make a Gift of Securities?
How you proceed depends on how your individual securities are held. If you hold the securities in your possession, they may be sent directly to LDS Philanthropies. If the stock, bond, or mutual fund share is held in a brokerage account, you will need to work with your broker to complete the transaction. It is important that you send the certificate under separate cover from the stock power. The stock power must have a medallion signature guarantee, which you can obtain from your local bank. Gifts of securities held in a brokerage account can be made directly through the Church's Donations-in-Kind office. This office will work directly with your broker to correctly complete your gift.
How Do I Make a Gift of Securities Using Gift-Planning Tools?
Securities can also be used to fund life-income gifts such as a Charitable Remainder Unitrust, Charitable Remainder Annuity Trust, or Charitable Gift Annuity. In larger estates, securities are an ideal asset to fund a Charitable Lead Trust. A gift bequest made through a Revocable Trust or Will provides another alternative in making a gift of securities to the Church or one of its institutions.