Donating stocks or mutual funds to The Nature Conservancy is a smart and simple way to help protect the natural world. By making a gift of appreciated securities, you may be able to avoid capital gains tax, diversify your portfolio and/or secure a stream of income.
How It Works
You can make a gift of appreciated securities—publicly traded stocks, bonds and mutual fund shares—to TNC while avoiding capital gains tax, diversifying your portfolio and/or securing a stream of income. It’s a simple and efficient way to give.
- You transfer appreciated securities to TNC.
- The Conservancy sells the securities and uses the proceeds to fund critical conservation work.
How You Benefit
- You receive credit and an immediate income tax deduction for the fair market value (average high and low prices on the day of the transfer).
- You avoid capital gains tax.
- You may fund a charitable gift annuity or a unitrust that diversifies your portfolio and allows you to receive lifetime payments that equal or surpass the dividends the securities are paying now.
Please note that the securities you use to make your gift must have been held by you for more than one year to be fully deductible.
When you donate appreciated securities, you are able to deduct the gift as a charitable donation AND avoid capital gains tax at transfer, though some capital gains taxation may be a part of the income stream if you choose to fund a gift that pays you income. This dual benefit allows you to leverage a larger donation by using appreciated securities rather than cash to make your gift. Here's an example.
Assumptions: Donor in 37% income tax bracket; capital gains tax rate 23.8%
(Tax rates and brackets vary for different individuals and families. State income tax rates not considered.)
|$10,000 CASH||$10,000 STOCK
COST BASIS $5,000
|Tax Savings @ 37%||$3,700||$3,700|
|Capital Gains Tax Saved||$0||$1,190|
|Net Cost of Gift||$6,300||$5,110|
The specifics of any deduction allowed will depend on your unique circumstances. As a result, you should consult your advisors for purposes of calculating the amount of your charitable income tax deduction, in light of applicable limitations for charitable contributions based on your adjusted gross income and any other charitable contributions you may make this year.
First, complete our online form to let us know your gift is coming; this helps us identify your gift when it comes in.
Transfer your stock by either of two methods.
- Transfer by broker: Draft a letter to your broker providing instructions for the stock transfer.
- Mail certificate(s): Send the stock certificate(s) by certified mail to the Conservancy. In a separate envelope, mail the conservancy your signed stock power form and a dated letter that identifies the stock, states how your gift is to be used and includes your signature exactly as it appears on the certificate. Send them on the same day by certified mail to: The Nature Conservancy, ATTN: Stock gift Manager; 4245 North Fairfax Drive, Suite 100; Arlington, VA 22203.
Follow these stock transfer instructions:
Account name: The Nature Conservancy (Tax ID # 53-0242652)
Account number: 749-04834
DTC Number: 8862
Broker: George L. Balboa, Jr.
Merrill Lynch Balboa & Blevins Group
1152 15th Street, NW, Suite 6000
Washington, DC 20005
Before giving mutual funds, please first contact our team at (833) 336-7526 or at email@example.com so we can research and be sure we can accept the funds into our account.
Meet Pam and Allen Rozelle
By using securities to set up a gift annuity, the Rozelles received a charitable income tax deduction—and nearly doubled their annual return.