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Donate Stock/Securities

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 asset.

For 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 lower.

Here is the comparison his broker gave him:

  Cash
Appreciated Securities
Value of Gift $1,000 $1,000
Ordinary Income Tax Deduction ($270) ($270)
Capital Gains Tax Savings $0 ($150)
After Tax "Cost of Gift" $730 $580
(Cost Basis $1,000 $375)

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), 701 A Street, Wilmington, DE 19801, please contact your stockbroker with instructions to make the transfer. 

Provide your broker with the following information in order to facilitate the transfer:

WSFS Bank’s Broker-dealer: INVEST Financial Corporation
DTC #:
0226
Account Number:
  WL9-039438

Please 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.

Next, please contact DHA's Executive Director, Patrick Carroll, and inform him of your gif. He will let WSFS Bank know to anticipate the transfer. Please include the name of the security being transferred, the number of shares being transferred, the expected date of transfer, and from whom the transfer is being made. He can be reached at pcarroll@dehumane.org 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.