Gifts of Stocks, Mutual Funds, and Bonds
Donating appreciated marketable securities, such as publicly traded stocks, mutual funds, and bonds, is easy and tax-effective.
Benefits of gifts of stocks, mutual funds, and bonds
- Gifting appreciated marketable securities held for more than one year can provide important tax advantages because the market value of the securities at the time of gift determines the contribution amount and avoids capital gain taxes which would result if the security were sold by the donor.
- For securities held for less than one year, the contribution amount is limited to your basis (the amount you paid for the security).
- Like gifts of cash, the amount of the contribution which is deductible is determined based on tax laws in effect in the year of gift.
- Please note that a gift of mutual fund shares can take much longer to process, often two to six weeks, than a gift of shares of individual stock.
How to make a gift of stocks, mutual funds, and bond
By electronic transfer - Please contact us for instructions on how you can transfer stock or bonds from your brokerage or investment account to the Community Foundation of Louisville. You or your Financial Advisor must notify the Community Foundation anytime you contribute stocks or mutual funds at [email protected] or 502.585.4649. Include the donor's name, Fund's name, and the transferring security name and number of shares. Our policy is to sell all shares within one business day after they are received or as soon as practicable thereafter, even if no donor information is provided.
By certified mail - If you hold securities in certificate form, you will need to mail two envelopes separately to complete your gift. Please notify the Community Foundation before sending this type of gift. In the first envelope, place the unsigned stock certificate(s). In the other envelope, include a signed stock power for each certificate. You may obtain this power from your broker or bank. Please remember to use certified mail.
More on gifts of stocks, mutual funds, and bonds
There are special rules for valuing a gift of stock. For your convenience, the Community Foundation of Louisville will provide the high, low, and closing price values on the day you made your contribution. The value of the proceeds deposited to the charitable fund may not necessarily equal the value you claim on your tax return. Please consult with your tax advisor to determine the appropriate value of your contribution.
Contact us
If you have any questions about gifts of stocks and bonds, please contact us. We would be happy to assist you and answer any questions that you have.
