Save Taxes by Making a Gift of Stock

06-09-2020 · Tocqueville Society


Did you know that you can avoid capital gains taxes and support United Way of Greater Atlanta at the same time by making a gift of appreciated stock? Market fluctuations make this a good time to donate stock.

You may know that donating stock to your favorite non-profit is an effective way to save on capital gains taxes. If you sell your stock, you will forfeit a portion of the proceeds to taxes. One easy way to help United Way’s mission — and your finances — is to make a gift of appreciated stock (securities that have been held for longer than one year).

When you donate stock, you are unburdening yourself of future taxes that are embedded in the stock, so you can give more, and still have your gift “cost” less.

But what if you want to keep a specific company’s stocks in your portfolio? You can make a gift of your appreciated stock now and purchase identical shares to replace what you donated. This technique allows you to maximize your giving:

  • avoid capital gains taxes;
  • keep your portfolio intact;
  • and give back to your community.

To make the gift: Inform your broker and United Way’s team of your desire to make a transfer. You will need to send a completed broker transfer form or written instructions to your broker specifying that you wish to make a charitable contribution to United Way of Greater Atlanta. Your transfer instruction document should include:

  1. The issuer of the securities (type of stock) and/or ticker symbol.
  2. The number of shares (or the minimum gift value).
  3. Transfer to United Way of Greater Atlanta’s Charles Schwab account: AM-8991-5184, DTC 0164 code 40. United Way’s federal tax identification number is #58-0566194. Broker: Dan White at 404-724-2469; Email: dan.white@schwab.com.
  4. Specifically request that the donor’s first and last names are transferred with the details.
  5. Notify Louise Davenport at 404.527.7262 or email accountsreceivable@unitedwayatlanta.orgof your stock transfer.  United Way’s federal tax identification number is #58-0566194.