PROCEDURE FOR DONATING STOCK
Many donors find it more beneficial to donate appreciated securities when they open a fund, add to an existing fund, or support Foundation operations. Such a gift will entitle you to a charitable deduction for the current market value of the asset, and you will avoid capital gains as well.
In certain cases however, such as if the stock you are about to donate has depreciated in value, it might be better to sell the asset and then donate the proceeds to the Foundation. When you handle your stock gift in this way, you will receive a charitable deduction for the cash gift, and you can claim the loss from the sale. Check with your tax advisor for more information.
Here is the procedure for donating stock to the Renton Community Foundation:
- Contact the Foundation to inform them of your intent. This avoids electronic transfers of money that arrive without identifying the donor.
- Give the Foundation the name of the stock and the number of shares so that we can track your gift once you have given authorization to transfer the stock to your stock broker.
- At that time, we will email you our “Letter of Authorization” to fill out and give to your stock broker. This authorization form will give your stock broker the information he/she needs (the Foundation account number and name of the broker to whom you will be sending the stock) to initiate the transaction.
*Please note that if you are considering donating closely held or thinly traded stock, you will need to contact our office first.
If you have questions, please don’t hesitate to give us a call at (425) 282-5199.