Benefits of Making a Stock Transfer Contribution
Most people think of cash when they consider a charitable contribution, but a gift of securities may be a
wiser choice. By contributing appreciated securities through United Way of Coastal Fairfield County, you
make a powerful community contribution while gaining valuable tax advantages. If you have owned
appreciated securities for at least a year and a day, your contribution can offer the following benefits
Claim the Market Value
Eliminate Capital Gains Tax
By claiming the market value (versus the cost basis)
By donating your appreciated securities, you avoid the
of the securities, you can enjoy a charitable
contribution tax deduction equal to the average of
capital gains tax you would owe if you sold the
securities yourself. The deduction of gifts of
appreciated capital-gains property is limited to 30% of
your adjusted gross income, subject to the five-yearcarry forward provision.
Enjoy a Last Minute Tax Break
the highest and lowest quoted sales price on the day
you make the gift.
One Receipt for Gifts to Many Charities
You will receive one tax receipt for the total value of
your gift while retaining the ability, through United
At the end of the calendar year, when tax breaks and Way of Coastal Fairfield County, to distribute part of
your gift to a variety of nonprofit organizations or
timing are critical, securities can be deducted on the
United Way of Coastal Fairfield County priority areas
date you transfer them.
that you care about
Stock Advantages Over Cash
Your securities donation can deliver significant tax advantages over a cash donation, allowing you to fund
the community issues you care about at a lower after-tax cost to you. The chart below depicts the difference
between the after-tax cost of a gift of cash and a gift of stock. Assume that the stock was originally
purchased at $250 (basis), the income tax rate is 27%, and the capital gains tax is 20%.
*For tax receipt purposes, actual stock valuation is based on the mean of the highest and lowest price on the
day the stock is received by United Way. Gifts of stock will be liquidated when received, and brokerage fees
will be deducted from the gross proceeds. The net proceeds will be disbursed to your charities.
Potential Stock Benefits
Cash
Stock
Value of Gift
$1000
$1000
Ordinary Income Tax Deduction
($270)
($270)
Capital Gains Tax Savings
$0
($150)
After Tax Cost of Gift
$730
$580
NOTE: THIS TABLE IS FOR ILLUSTRATIVE PURPOSES
ONLY. ONLY YOUR OWN FINANCIAL OR TAX ADVISOR CAN
ADVISE IN THESE MATTERS.
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Stock Donation Procedure
United Way of Coastal Fairfield County has accounts at 2 brokerage firms. If you have an account at any of
the below noted firms, the easiest way to donate stock is to have your broker transfer your stock gift from
your account to the applicable account noted below.
Brokerage
Account #
DTC #
Contact
People’s Securities
220-18834-16
220
Ron Nolting
Merrill Lynch
848-02101
5198
Steve Nussbaum
Assistant
Telephone #
Vicky Washeuk (203) 338-3021
Luis Guiterrez
(203) 291-3892
If you have or use a broker from a firm other than the one noted above, instruct him or her to transfer
the stock to any one of the above brokerage firms. Please have your broker contact United Way to alert us
re: the transfer in progress.
If you do not use a broker, mail or deliver the stock to Hilda Johnson’s attention (please send separate
from the stock a signed Stock Power, but please do not “sell, assign or transfer” the stock to the United Way.
The clearing agent cannot sell the stock in this form). We will send an immediate acknowledgement of the
gift.
We will issue you a tax deduction receipt based on the average of the high and the low of the stock on the
date the stock is transferred into one of United Way’s accounts or received by us directly.
United Way of Coastal Fairfield County contact regarding gifts of stock:
Hilda Johnson
Chief Financial Officer
855 Main Street 10FL
Bridgeport, CT 06604-4915
E-mail: [email protected]
Phone (203) 339-6322
Fax (203) 334-3297
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