Direct gifts of stock and mutual funds to Hibiscus Children’s Center are simple and, as compared with a gift of cash, are often advantageous from your perspective. You can make an immediate outright gift of stock or use stock to fund a more sophisticated planned gift, like a gift annuity.
With stock that has appreciated in value, you must give the stock directly to Hibiscus to realize these benefits. If you sell the stock and subsequently give the proceeds to Hibiscus, you will be responsible for paying a capital gains tax on the profit.
With stock that has depreciated in value (i.e., stock whose value is less than its original cost), the optimal charitable gift process is reversed. You should sell the stock first and then donate the proceeds. This way, you can derive the income tax benefit of the capital loss.
The actual donation process is usually quite simple:
You instruct your investment advisor or broker to transfer the desired shares of stock to the Hibiscus Children’s Center brokerage account designating Hibiscus Children’s Center the beneficiary of the gift. Hibiscus will provide you or your advisor with the relevant information concerning its brokerage account.
Call for more information: 800-403-9311