Gifts of Stock
- Last Updated on Friday, 23 November 2012 16:49
- Written by Wylie Crawford and Gary Hendrickson
The North Shore Choral Society is the grateful recipient of contributions from its audience, membership, and the general public. The following paragraphs describe how donors with appreciated stock can get the greatest benefit from their gifts. Detailed information one needs for the stock transfer process is included.
Assume, shall we, that you have appreciated stock and you might like to make a contribution to NSCS? Let’s look at your options:
- Should you use your hard-earned after-tax dollars to contribute? If you do, of course, you will be able to deduct the value of your contribution on your Federal tax return, which is a nice benefit. But this isn’t the wisest use of your resources.
- Should you sell some of your stock and then contribute the proceeds of the sale? Again, you will be able to deduct the value of your contribution – BUT, you will be taxed on the amount by which your stock grew since you purchased it. Again, not the wisest use of your resources.
- Probably the wisest action is to contribute shares of appreciated stock to the NSCS. That way, you won’t pay capital gains tax on the stock’s growth in value AND you get to deduct the value of the stock, as well! You help yourself while helping the North Shore Choral Society. (Note that this works best with stock that has grown in value while you've owned it.)
As you know, bank accounts, including ours, cannot receive donations of stock shares directly. Your stock shares need to be transferred into an appropriate brokerage account in order to execute your donation. NSCS has established a brokerage account with Vanguard to receive such donations. After receiving donated shares in our Vanguard Brokerage Account, we will sell them and deposit the proceeds into our bank account, and we will gratefully furnish you a tax letter. Here is the information your broker needs in order to transfer donated stock shares to NSCS:
Brokerage Agency: Vanguard Brokerage Services
DTC Participation Number: 0062
For Credit to Account Number: 31494504
For Benefit Of: North Shore Choral Society
For information at Vanguard Brokerage call 800 992-8327
Feel free to contact the Treasurer of the North Shore Choral Society with any questions.