A Step by Step Guide to Making a Gift of Appreciated Stock
By Jay Dyer, Becker Capital Management
With another strong year for the stock market almost in the books, investors likely own stocks that have appreciated in value. That’s great; however, should investors own those stocks in a taxable account, selling those stocks means paying capital gains tax. Using appreciated stock as a charitable gift allows investors to avoid capital gains tax while making a valuable contribution to PCC.
Your first step in donating stock is to determine which stock(s) you want to donate. This is partly a matter of personal preference, and partly a question of tax implications.
Your best bet is to look for stocks that you bought at least a year ago and that have risen in value since you bought them. Not only will that make for a more worthwhile donation, but it also has the greatest tax impact.
You’ll need to contact your brokerage firm, bank, or investment advisor for the exact process required of you to make this donation. Each institution may handle this process differently, but all facilitate stock donations frequently, so the process is generally easy. Most of the documentation process can be completed via secure email.
Next, you (or your advisor or financial institution, on your behalf) can reach out to the PCC Foundation and let them know your name and the stock you’re gifting, the number of shares and the date they should arrive, and how you would like to designate your donation (greatest need, establishing or supporting a scholarship, or a particular program). That way, the PCC Foundation will know exactly who sent the donation and its exact terms. When you or your advisor contact the Foundation, they can also provide the necessary account information, which isn’t published on the PCC website for security reasons.
Once the donation is complete, the PCC Foundation will provide you with a confirmation letter and gift receipt for you to use when filing your taxes.
If you need additional information, contact Ann Prater, Executive Director, at firstname.lastname@example.org or 971-722-4387.
As the calendar year comes to a close, taking advantage of this tax-smart way to support the mission of the PCC Foundation can benefit you while helping PCC students succeed.