Gifts of appreciated, marketable securities (such as stocks, bonds, mutual fund shares) can afford donors considerable tax advantages. If you have owned the security for at least one year, you can receive a tax deduction for the full value of the security at the time of donation. You can avoid paying capital gains tax, and, you do not have to pay commission to sell the security. Click here for an example of the tax advantages.
Please consult your tax advisor to see if you qualify for any tax
advantages. Securities can be easily transferred from the donor’s
account to the Foundation’s local brokerage account. If you
hold the securities in individual certificates, contact the the
Foundation's Treasurer for more information.
If the security is held in a brokerage account, follow these steps:
Follow this link to the attached Instructions to Broker(in pdf format).
Fill in the appropriate information regarding the shares you wish to gift.
Check with your broker to see if they require a signature guarantee or any additional information.
Mail the letter to your broker.
Mail a copy of the letter to the Foundation Treasurer. This allows us to track your gift.
Las Lomitas Education Foundation Treasurer
P.O. Box 7282
Menlo Park, CA 94025
The date of your gift will be the date we receive your stock in our account, not the date of your letter. We will send you a gift acknowledgment notifying you of this date.
Remember, many companies will match your gift to The Foundation. Click
here for more matching gift details.
How giving stock can work for you
You are generally allowed a federal tax deduction for the full present value of the stock you donate. By directly donating appreciated stock owned for over 12 months, you can bypass the federal capital gains that would be owed if the stock were sold and the proceeds donated.
Assume you wish to donate shares of stock purchased for $2,000 several years ago and worth $10,000 today. At today's maximum tax rate, you could realize some 40% greater savings than if you had sold the stock and given a gift of cash.
The above savings are realized only when a stock is transferred directly and is classified as a long term capital gain. Stale of stock and donation of proceeds may subject donor to capital gains tax.
This example illustrates the potential value of a stock gift and highlights some of the maximum available benefits. These benefits depend upon a number of things, including the amount of the stock's appreciation, your adjusted gross income and current federal/state tax rules. We strongly advise that you contact your accountant or other tax advisor to determine the exact income tax effect of any donation.