Your guide to donating appreciated stocks
Because of their flexibility, donor-advised funds are a great way to give strategically, generously and impactfully. For example, did you know you can fund your donor-advised fund account with non-cash assets? As we head into a new year, now is a great time to review our process when giving these assets, specifically appreciated stocks.
What is a non-cash asset?
While liquid assets (cash) are a common funding source, donors may also choose to donate non-cash assets. These funds represent the value earned on an investment between the time of purchase and today’s current market value. Donors can invest the appreciated stock’s value in their donor-advised fund, among other non-cash assets that accrue value over time.
What are the benefits?
Both publicly traded and closely held appreciated stock gifts allow donors to receive a tax deduction equal to the donation’s value. Donors who contribute stock and/or appreciated assets are eligible for tax deductions and may reduce or eliminate liability for capital gains taxes. If you’ve seen gains in your stock portfolio, you can invest those tax-free in your donor-advised fund. This allows you to avoid paying taxes on the appreciated asset when it’s not money in your pocket to be spent. Please consult with your financial advisor before making these decisions – they can help you determine if this is a wise strategy for you.
How does it work?
After discussing your options with your financial advisor and deciding which stocks to send to your donor-advised fund, call our office to let us know about the upcoming sale. Please note the type of stock and number of shares we should anticipate so we can direct the proceeds to your account. Upon completion, monitor your donor-advised fund account to ensure the funds are properly allocated.
Dates and deadlines
To provide the best possible service and ensure your gifts qualify for a charitable income tax deduction in 2024, please keep these important dates in mind.
- Gifts of appreciated securities (stocks, mutual funds, ETFs, etc.) must be received by the end of the day on Tuesday, Dec. 31, 2024. Please be aware there is a delay between initiating the transfer and the stock being received in our account, so plan accordingly. Email Stephanie at stephanie@ccfmemphis.com or call our office for specific transfer instructions.
- If you make a gift of appreciated securities, please notify us by emailing details to stephanie@ccfmemphis.com as soon as possible. Failure to notify us of incoming gifts will delay processing.
- Checks sent via U.S. Postal Service must be postmarked on or before Dec. 31, 2024. Make checks payable to the Christian Community Foundation, and please note the fund name in the memo line. Our mailing address is 6075 Poplar Ave. Ste. 130, Memphis, TN 38119.
- Checks sent via carriers such as FedEx or UPS must be physically received at 6075 Poplar Ave. Ste. 130, Memphis, TN 38119 on or before 3 p.m. on Tuesday, Dec. 31, 2024.
- Wire transfers of cash must be received no later than 3 p.m. on Tuesday, Dec. 31, 2024.
- ACH transfers must be initiated on or before Friday, Dec. 27, 2024.
Please email stephanie@ccfmemphis.com or give us a call at 901-682-6201 should you need assistance of any kind.