Benefits of Making a Stock Transfer Contribution

Take A Charitable Income Tax Deduction

Imagine giving a gift of appreciated securities (stocks, bonds, mutual funds) that benefits our community and saves tax dollars all at the same time! Sound too good to be true? It is true. Federal law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income.

Save On Capital Gains Tax

By contributing long-term appreciated securities through the United Way Campaign, you avoid the capital gains tax that would otherwise be due if you sold the securities for your personal benefit.

Potential Stock Gift Benefits

Example: You have securities that have an original cost of $2,000, with a current market value of $10,000.

  Option A Option B Option C
  Give securities Cash or check Sell securities and give cash
Value of gift     $10,000  $10,000  $10,000

Income tax savings

(assuming 35% tax rate)

($3,500)    ($3,500)    ($3,500)   

Capital gains tax

(assuming 15% tax rate)  

 ($1,200)  n/a $1,200
Net cost to donor $5,300 $6,500 $7,700

 

This example illustrates the potential benefit of gifts of long-term appreciated stock and highlights some of the maximum available benefits. We strongly advise you to contact your accountant or tax advisor to determine the exact income tax effect of your gift. To calculate an illustration of the benefits of donating securities as opposed to cash, please visit http://stock.unitedway.org.

It's Easy to Transfer Stock - Here's How

Please notify United Way of Central and Northeastern Connecticut of your intent to transfer stock by calling (860) 493-6847.


If you hold securities in “street name”—that is, you do not have physical possession of the stock certificate—please notify your broker to initiate a "broker to broker" transfer. Please tell your broker to donate the stock to United Way of Central and Northeastern Connecticut. (Please use our full name; there are many other United Ways in the state.) Our brokerage firm is Merrill Lynch. The account number is 814-04354 and the DTC code is 5198. Our broker will then transfer the securities to our account to benefit the Community Campaign. To avoid capital gains tax, make sure that the securities are transferred to our account before they are sold. If you have physical possession of the actual stock certificate, or if you hold mutual fund shares, we are happy to provide instructions on how to transfer these gifts to us. Please call (860) 493-6847 for further information.
 

Tax Deductions and the Date of Your Gift

The date of the gift is the day the stock passes from your control. For gifts of securities held longer than one year, the value for income tax purposes is the mean between the high and low quoted selling price on that day. Your gift will be acknowledged by the United Way Campaign with the valuation of your gift for tax purposes. Important: We recommend that United Way of Central and Northeastern Connecticut not be indicated as “transferee” on the assignment form on the back of the stock certificate or on the stock power, and that the stock not be sent to a transfer agent for registration in United Way’s name. These procedures usually result in needless delay and expense.