If you choose to gift stock or mutual funds to Delaware Humane
Association, a qualified charity, you will be able to deduct the full
market value (FMV) as a tax-deductible gift and at the same time, escape
the capital gains tax on the difference between the FMV and your
original basis. Therefore, your "cost of gift" is reduced by the amount
the securities have grown, while DHA utilizes the full value of your
example, a supporter recently made a gift of $1,000 to DHA. He was thinking of giving a cash gift of $250 in time for an end of year tax deduction. However, his financial broker suggested to him that he would
be better off to contribute appreciated stock shares directly to DHA,
since he was holding certain stocks with a low cost basis. His broker
mentioned that because of the stock market performance that year, he
could make an even larger contribution because his "cost of gift" was
Here is the comparison his broker gave him:
|Value of Gift
|Ordinary Income Tax Deduction
|Capital Gains Tax Savings
|After Tax "Cost of Gift"
You should ask your accountant or advisor to tell you how such a gift will impact your situation.
How to Donate Stock/Securites to DHA
If you would
like to make a donation by electronically transferring stock/securities to Delaware Humane Association
(DHA), please contact your stockbroker with
instructions to make the transfer.
broker with the following information in order to facilitate the transfer:
Broker-dealer: NFS/Commonwealth Financial Network
DTC #: 0226
ensure that your stockbroker knows to transfer the stock outright to DHA,
rather than selling the stock first and then transferring the proceeds. Otherwise,
you could incur a capital gains tax on the appreciated securities.
The value of
your donated stock is the average of the high and low value on the date of the
gift. In considering when you might wish
to transfer stock, be advised that the gift date for tax purposes is the day
the securities are transferred directly to DHA.
For more information about contributing stock to DHA, please contact Executive Director Patrick Carroll at email@example.com or
(302) 571-8171, ext. 302.
Tax Advice Disclosure: To ensure compliance with
requirements imposed by the IRS under Circular 230, we inform you that any U.S.
federal tax advice contained in this communication (including any attachments),
unless otherwise specifically stated, was not intended or written to be used,
and cannot be used, for the purpose of (1) avoiding penalties under the
Internal Revenue Code or (2) promoting, marketing or recommending to another
party any matters addressed herein.