One of the most financially wise ways to give is through the transfer of stocks. You have the capacity to allow stocks, bonds or any other securities to be transferred as gifts to The Arc Alliance. Giving the gift of stock has significant benefits for you the contributor. If the stock has appreciated in value, the holder( you)can avoid paying the capital gains tax by giving it as a gift.
There are two methods for transferring the ownership of a stock, which vary depending on how it is currently being held.
If the stock is currently held in certificate form, then transferring the physical stock is required. The owner must endorse the stock by signing it in the presence of a guarantor, which can be their bank or broker.
There may also be a form on the back of the certificate, which relates to the transferring of ownership. After the form is filled out and signed, the certificate will be rendered non-negotiable and become transferable.
Often there will not be a physical copy of the stock, as many investors own the electronic version, which is stored in a brokerage account. To gift this stock, the owner should gather the brokerage account information of the party they are gifting. The next step is to contact The Arc Alliance’s broker, pass on the new account information, and order the electronic transfer to the other party
Things to remember:
Let The Arc Alliance know the stock is being transferred as a donation; include the type and number of shares that will be transferred. This information ensures that we credit you properly and issue the receipt you will need for tax purposes.
Avoid the capital gains tax entirely by making a charitable gift of stock. Please note, that the stock contributed must have been held by you for more than 12 months to garner the greatest tax savings.
If the stock is in certificate form, mail the certificate and a completed stock power form (available from your financial services provider) in separate envelopes to the address below. For security purposes, send the certificate by registered mail with return receipt requested to:
Executive Director of The Arc Alliance Foundation
The Arc Alliance
3075 Ridge Pike
Eagleville, PA 19403
For more information about how to transfer securities or to learn the brokerage firm for The Arc Alliance, please contact Diana Polec, at firstname.lastname@example.org or 610-265-4700 ext 7249.
Thank you for your generous support of The Arc Alliance!