A northern saw-whet owl at the Mountsberg Raptor Centre in Campbellville, Ontario, Canada. © Megan Lorenz
Give appreciated securities to The Nature Conservancy and you shall receive — a tax break. Whether it's 100 shares of blue-chip stock or a new high-tech gadget, our government does indeed allow you to deduct these gifts as charitable donations. Moreover, you also avoid capital gains tax on the transfer.
This double benefit means that you can leverage a larger donation by using appreciated securities rather than cash to make your gift. Here's how it works:
Assumptions: Donor in 33% Income Tax bracket; Capital Gains Tax rate 15%
$10,000 Stock Cost Basis $5,000
$15,000 Stock Cost Basis $7,500
|Tax Savings @ 33%||$3,300||$3,300||$4,950|
|Capital Gains Tax Saved||$0||$750||$1,125|
|Net Cost of Gift||$6,700||$5,950||$8,925|
The extra tax saved by using appreciated securities instead of cash to make a $10,000 gift is clear. Now look at the results for the $15,000 gift of securities. With total tax savings of $4,950, it costs you just $2,225 more to make this contribution than the $10,000 cash gift ($8,925 - $6,700) — and to deliver 50% more benefit to The Nature Conservancy.
We welcome gifts of publicly traded stocks, bonds, and mutual fund shares. Some donors own stock in closely held corporations. Learn about using business assets to make a gift. The securities you use to make your gift must have been held by you for more than one year to be fully deductible.
Securities fluctuate in price — how will my gift be valued?
We take the average of the high and low prices for the security on the date it is received by The Nature Conservancy. If the high price was $80 and the low was $70 on the day you made your gift, your gift will be $75 per share.
If the stock you donate is held by your broker, the gift date is the day the stock is received into our account. If you hold the certificates yourself and mail them to us, the gift date is the postmark date on the envelope.
Donors of mutual fund shares use the fund's closing price on the day the shares are received into our account.
Is it difficult to transfer securities?
Not at all. With our details on how to transfer appreciated securities, we can help you through every step of the process.
How to contribute gifts of securities
When giving securities, be sure to consult with your financial advisors first. Let us know that the gift is coming, and what program or department you want us to apply it to.
Securities held by your broker
Inform your broker in writing that you wish to give appreciated securities to The Nature Conservancy. Download a sample letter for your use. Be sure to let the broker know when you'd like the transfer made. Your broker will need to call us at (877) 812-3698 to obtain pertinent account information.
Certificates you hold
If you hold the actual stock certificates, you will need to sign a stock power form for each certificate you contribute. You may obtain a stock power from any broker or financial institution. When you sign the power, be sure to sign your name precisely as it appears on the certificate. For example, if you are listed as John A. Johnson on the certificate, sign it John A. Johnson.
When mailing the certificates, use two envelopes. In the first envelope, place the unendorsed certificates. In the second envelope, place the completed stock power(s). Send them to us on the same day by certified mail. Gift date is determined by post mark. Our address is:
The Nature Conservancy
4245 North Fairfax Drive
Arlington, VA 22203
Mutual fund transfers usually take a longer time to transfer as each mutual fund company has its own requirements for making charitable contributions. Call us at (877) 812 3698 so that we can work with you to determine the best method of transfer and to discuss your intent. We may need to create an account with your mutual fund company before the transfer can occur, so allow at least one month for the transfer.
Creative Plans for Securities Gifts
Use your gift of appreciated securities to fund a life-income gift at The Nature Conservancy like a charitable gift annuity or a unitrust. Pay no upfront capital gains tax on the transfer, and receive lifetime payments from your gift plan that equal or surpass the dividends the securities are paying now. The result? You make a gift to The Nature Conservancy while diversifying your portfolio and securing a stream of income.
Helpful Forms for Transfering Stock and Mutual Funds
Fine More Information about Gift Planning:
Learn about all types of gifts of assets.
Find out how making a charitable gift annuity can support you and nature.
Have you learned about unitrust gifts with the Conservancy?
You can protect grasslands, prairies and other natural places by making a planned gift with The Nature Conservancy. Contact us today.