Donate Appreciated Stock or Mutual Funds
Have you owned stock or mutual funds shares for more than a year that have appreciated in value? Donating these may be a better choice than giving by cash, check or credit card.
A gift of appreciated stock allows you to make and deduct a larger charitable contribution than the original purchase price of the shares. You receive a tax deduction for the share's current fair-market value, and completely avoid capital gains tax.
Give More and Gain More—Donate Your Stock or Shares Instead of Selling Them!
Note: This scenario is for illustrative purposes. It does not represent an actual donor to GFA.
Many years ago, David purchased stock shares for $100. Today, the shares are worth $1,000. If David sells the stock himself and donates the proceeds, he can provide Bibles for 240 people and receive $108 in tax savings for his charitable donation.
But if David donates the stock directly to GFA, he can provide Bibles for 333 people and receive $400 in tax savings for his charitable donation that originally cost him only $100! Here's how:
& Give Proceeds to GFA
Directly to GFA
|Original cost of stock
|Plus appreciation (gain)
|Minus long-term capital gains tax*
|Amount of gift to GFA
David gives more!
|Tax savings from charitable deduction**
|Less capital gains tax
|Actual tax saved
|Net gain after donation
(original cost less tax saved)
David gains more!
*15% federal + 5% state
** 35% federal + 5% state tax
If David likes the stock but also wants to reap the benefits of donating stock, he can donate his stock shares and use the cash he would have donated to repurchase the same stock. This will reset his cost basis and provide tax-free rebalancing of his portfolio.
How to Donate Appreciated Stock or Mutual Fund Shares
The preferred way to give shares of stock or mutual funds to GFA is to transfer the shares to our Wells Fargo Advisors account.
- If your shares are in a Wells Fargo Advisors account, a direct transfer can be made to:
Gospel for Asia, Inc.
Account number: 3764-8370
- If your shares are with another brokerage firm, contact your broker and give them the information below in order to donate the shares via a DTC transfer.
National Investors Services Corp
Deliver to DTC Clearing
for Gospel for Asia
Wells Fargo Advisors account #3764-8370
- VERY IMPORTANT: On the day of the transfer, please contact GFA to let us know:
If you have the stock certificate in hand, you should:
- The name of the stock
- The number of shares
- The date of the transfer, and
- Your preference for how the proceeds from the sale of the stock should be used (e.g. support National Missions, Bibles, GFA's Bridge of Hope Bridge of Hope Program, Where Most Needed, etc.)
- Endorse the back of the certificate appointing Wells Fargo Advisors as attorney to transfer the certificate.
- Leave BLANK the line regarding to whom the certificate is being transferred.
- Sign the back of the certificate exactly as the name(s) appear on the front.
- Write a letter indicating that you wish to donate ___ (number of shares) of _________ (name of stock) to GFA's Wells Fargo Advisors account #3764-8370.
- Mail the certificate and letter to the following address:
After we receive the gift of stock or mutual fund shares, GFA will immediately liquidate the shares and send you a Gift-in-Kind receipt. This receipt lists the name of the stock or mutual fund, the number of shares, the date they were received into our account, and that no goods or services were received by you in exchange for the gift. IRS regulations do not allow us to state the value of the shares on the receipt. Since the value of stocks and mutual funds fluctuate so quickly, the fair market value of your gift is the average price of the stock or mutual fund shares on the day they were received into our account multiplied by the number of shares donated.
If your mutual fund shares cannot be transferred to Wells Fargo Advisors, GFA has accounts with several mutual fund investment agencies. If we don't have an account with the agency that exclusively handles your mutual fund, we will open one. Then a transfer can easily be made from your account to our account, and we will redeem the shares to use for our ministry purposes.
- Jackie Speth
Wells Fargo Advisors
10345 N. Port Washington Road
Mequon, WI 53092
Sell Depreciated Stock
If your stock or mutual fund shares have lost value, it may be wiser to sell them and then donate the proceeds of the sale to GFA. By selling stock that has lost value you may be able to write off the loss as well as deduct the charitable donation. This could be a great way to receive two tax deductions from the sale of your stock. It doesn't matter how long you have owned the stock in order to take advantage of the loss.
Stock Transfer Contact Form
For more information:
If you have any questions or wish to start the process for your gift, please fill out our contact form, or call GFA's Harvest Foundation at 800-946-2742.
All gifts are subject to Gospel for Asia's Gift Acceptance Policy.
DISCLAIMER: This web page is designed to provide information and illustration of the subject matters covered. It is not intended, nor should it be used as legal, accounting or other professional advice. It is always a good idea to seek legal and tax advice from your professional advisor(s).