Why make a stock donation to United Way of Mid Coast Maine?
Most people think of writing a check when they want to make a charitable gift. However, gifts may be made with many types of property. You can receive significant tax advantages by donating securities rather than cash.
United Way of Mid Coast Maine donors have found that they achieve substantial savings by giving appreciated securities (stocks or bonds that have grown in value since they were originally purchased). You may deduct the full market value of appreciated securities and avoid any obligation to pay capital gains taxes.
United Way of Mid Coast Maine donors have found that they achieve substantial savings by giving appreciated securities (stocks or bonds that have grown in value since they were originally purchased). You may deduct the full market value of appreciated securities and avoid any obligation to pay capital gains taxes.
Donating Stock for Safe & Healthy Community
Take for example: Maria owns stock that she bought for $2,500, which has grown in value over the last few years and is now worth $10,000. Maria is planning a gift to United Way of Mid Coast Maine and is thinking about how she can make the biggest difference. Here’s what it looks like if she gives the stock directly to United Way of Mid Coast Maine versus selling the stock and donating the proceeds:
- |
Give the Stock Directly |
Sell the Stock, Give Proceeds |
Market Value of Stock |
$10,000 |
$10,000 |
Capital Gains Tax 15% |
- none - |
$1,125 |
Value of Gift to UWMCM |
$10,000 |
$8,875 |
Charitable Tax Deduction (33%) |
$3,300 |
$2,929 |
Total Tax Savings |
$3,300 |
$1,804 |
By giving stock directly to United Way of Mid Coast Maine, Maria is able to make the biggest impact and have significant tax savings.
A few other considerations:
A few other considerations:
- If, through gifts or inheritance, you’re holding stock that doesn’t align with your values (e.g. oil, armaments, tobacco), you can put them to work for social justice. United Way of Mid Coast Maine divests from such stocks and directs the resources toward critical community support work.
- If you’re in a tax bracket higher than 33%, the tax savings – and the impact of your gift – will be even greater.
Giving securities to United Way of Mid Coast Maine is easy
United Way of Mid Coast Maine can accept publicly traded securities (generally, stocks and bonds). These marketable securities may be transferred electronically to the United Way of Mid Coast Maine account at Bath Savings Trust Company. Or, they may be delivered physically to a United Way of Mid Coast Maine brokerage account with the transferor’s signature or stock power attached.
In order to make a stock donation, you will need United Way of Mid Coast Maine’ brokerage information, DTC number, tax ID number, and account number. Some of this is sensitive information, not to be published online.
When you’d like to make your stock donation, please contact Samantha Ricker, Director of Marketing & Resource Development, and she will supply with the information you need and answer any of your questions.
sricker@uwmcm.org
207.443.9752
Additional important information:
Please Note: The information provided here is meant to help you think about your charitable giving options. Every donor’s financial and tax situation is unique, so this shouldn’t be considered legal or tax advice. If you’re considering a stock gift, be sure to consult with your own tax and financial advisors.
In order to make a stock donation, you will need United Way of Mid Coast Maine’ brokerage information, DTC number, tax ID number, and account number. Some of this is sensitive information, not to be published online.
When you’d like to make your stock donation, please contact Samantha Ricker, Director of Marketing & Resource Development, and she will supply with the information you need and answer any of your questions.
sricker@uwmcm.org
207.443.9752
Additional important information:
- It is United Way of Mid Coast Maine’ policy to sell all marketable securities upon receipt, though the Board of Directors has the authority to make exceptions.
Please Note: The information provided here is meant to help you think about your charitable giving options. Every donor’s financial and tax situation is unique, so this shouldn’t be considered legal or tax advice. If you’re considering a stock gift, be sure to consult with your own tax and financial advisors.
