How to Make a Gift of Appreciated Securities

As you consider tax wise ways of giving to Sherman Library & Gardens, you may want to analyze the benefits of giving appreciated securities. Long-term appreciated stock (those held longer than 12 months) are particularly beneficial to give because you receive a charitable deduction for the full fair market value of the gift and, in addition, you avoid paying federal capital gains tax, state income tax, and possibly the 3.8% Net Investment Income Tax on the appreciation. A charitable income tax deduction is allowed for up to 30 percent of your adjusted gross income in the year of the gift. Any unused portion can be carried forward for up to an additional five years.

 

Securities Transfer Instructions

Broker Contact
J P Morgan
DTC #902 – Account B4905 3006

Sherman Library & Gardens Contact
Scott LaFleur
Phone (949) 673-2261
Fax (949) 675-5458
E-mail Scott@SlGardens.org

Note

Please inform Sherman Library & Gardens when initiating a DTC transfer. Include information concerning security description, shares, and transfer initiation date.

Important

Pursuant to Internal Revenue Service regulations, the effective date of the gift for valuation and charitable deduction purposes is the date the securities are transferred into Sherman Library & Gardens’ brokerage account. If the transfer needs to be made by a specific date, please allow sufficient time for the DTC transfer to take place.

Easy Steps for Transferring Securities

The rules for transferring securities, while not complicated, are strict. You will want to exercise care to assure that your stock transaction is completed correctly. The same rules apply to giving shares of a mutual fund. If you have any questions about the following instructions, please call Gary Pickett at (949) 642-1626.

Establishing the Gift’s Value

The amount of your deduction depends on the value of the securities on the date the gift is completed. This date may be important for your tax planning, particularly at year-end.

The gift value of the securities is the average of their high and low prices on the date of the gift. For mutual fund shares, the net asset value (NAV) at the close of business on the date of the gift is used to establish the value of the gift.

If the Securities are Held by a Bank, Broker, or Mutual Fund Company

Write your bank, broker, or mutual fund company a letter (a sample letter is attached), which contains the following statement:

You are requested and authorized to make a gift of (number) of shares of (name of stock or mutual fund) to Sherman Library & Gardens (federal tax identification number
95-2672431) effective today (date).

Please transfer these shares to Sherman Library & Gardens via the Depository Transfer Company (“DTC”) to its J P Morgan account, DTC#902 account B4905 3006.

Enclose the attached Security Transfer Instructions.

Send a copy of your letter to:

Sherman Library & Gardens
567 San Nicolas Drive, Suite 220
Newport Beach, CA 92660-6510

Phone (949) 673-2261
Fax (949) 675-5458
E-mail Scott@SLGardens.org

The Sherman Library & Gardens, upon receipt of your letter, will promptly contact your bank, broker, or mutual fund company to arrange disposition of the stock or mutual fund.

Note

The gift is complete for tax purposes when the securities are transferred into the Sherman Library & Gardens brokerage account. It does not matter whether the securities are registered in your name, “street name,” or certificate form. The details will be handled by your broker and the Sherman Library & Gardens staff.

 

For information about a bequests and estate planning opportunities, contact:

Scott LaFleur, Garden Director

949-673-2261 Ext. 301

scott@slgardens.org

 

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