This guide is provided for friends of Hospice of the Comforter who wish to make gifts using appreciated securities that are publicly traded, including stocks, bonds, and mutual funds. Generally, you are entitled to a charitable deduction for the full fair market value of appreciated securities, provided that they have been held longer than one year. You will usually avoid paying the capital gains tax that would be due if you sold the securities.
For specific legal, tax, or investment questions, we recommend you consult your financial, legal, or tax professional.
To Donate Publicly Traded Stock or Bonds held at a Bank or Brokerage Firm
If the securities you wish to donate are held in a brokerage account, instruct your broker to transfer them to Hospice of the Comforter, using the electronic transfer (DTC) details on the printable, pre-formatted form.
Simultaneously, please contact Hospice of the Comforter's Development Department with the following information (contact information is provided at the end of this guide):
- The corporate name and number of shares of each security you have authorized to be transferred;
- The purpose of the gift (e.g., Hospice of the Comforter Fund or restricted purpose);
- The name and phone number of your broker.
VERY IMPORTANT
Because of the complexity of the DTC system, it is difficult, and usually impossible, for the Hospice of the Comforter broker to identify the source of a stock transfer. It is critical that you comply with the request above to contact our Development Department about your pending securities gift. This procedure will ensure that we are able to acknowledge and apply your gift properly. Edward Jones Investments offers Hospice of the Comforter a favorable brokerage fee arrangement, which generally results in higher net proceeds to our agency when your donated securities are subsequently sold. Please contact the Development Department if you wish to donate securities using a different brokerage firm.
To Donate Publicly Traded Stocks or Bonds You Hold in Certificate Form
Send the following documents to the Hospice of the Comforter's Development Department at the address noted at the end of this document. For your protection, it is advisable to use certified U.S. Mail.
- The certificate(s), unsigned
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A stock power for each certificate
Do not complete the stock power form(s), except for the signature line. The signature(s) affixed to each stock power must match the certificate owner’s name(s) as it appears on the face of each corresponding certificate(s), and must be guaranteed by an officer of a commercial bank or brokerage.
VERY IMPORTANT
To prevent unauthorized negotiation of your stock or bond certificate(s), the certificate(s) should never be mailed in the same envelope with a signed stock power. Please mail stock power forms separately from certificates.
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A Letter of Intent
The Letter of Intent should indicate your wish to donate the subject securities to Hospice of the Comforter. The letter should be signed by the owner(s) of the certificate(s), and can be enclosed in either the envelope containing the stock certificate(s) or the stock power(s). The letter should also indicate the purpose for which the securities are being donated (e.g., Hospice of the Comforter Fund or a restricted fund).
To Donate Mutual Fund Shares
Contact your mutual fund representative and ask whether an account for Hospice of the Comforter has already been established at the investment company. Most likely, there is not an existing account, and one will need to be opened.
- Ask your representative for documents to open a new account;
- Forward these documents to the Hospice of the Comforter Development Office, accompanied by a letter indicating your intent to donate mutual fund shares to the agency. In your letter, please provide the name of the mutual fund, the number of shares or dollar amount you intend to donate, the purpose of your gift (e.g., Hospice of the Comforter or a restricted purpose), and your current information to enable us to contact you;
- Hospice of the Comforter will inform you of its new account number, as soon as it is issued;
- Contact your mutual fund representative and issue instructions to make your gift to the Hospice of the Comforter account.
Effective Date and Value of Your Gift
Hospice of the Comforter will value your publicly traded securities based on the mean market value of the securities on the date of the gift and will provide you with an acknowledgement specifying the resulting calculation. The gift date is determined according to the method of delivery, as outlined below. These standards were developed according to guidance offered in IRS Publication 561. Valuation of closely held securities may differ.
- Delivery by U.S. Mail – the postmark date of the separately mailed certificate(s) or properly completed stock power(s), whichever is later
- Delivery by Courier (FedEx, UPS, etc.) – the date of receipt (by our agency) of the separately mailed certificate(s) and properly completed stock power(s), whichever is later
- Delivery by electronic transfer, or DTC - the date the donated securities are received in our agency brokerage account
- Delivery in person (to an officer or employee of HOTC) - the date on which the employee receives the certificate(s) and properly completed stock power(s)
- Delivery by re-registration of a certificate to Hospice of the Comforter – the date on the re-issued security (this method of delivery can take several weeks and could compromise a donor’s tax deduction in a given year if re-registration is not complete prior to the donor’s tax year)
- Delivery by transfer of mutual fund shares – the date on which the shares are deposited in Hospice of the Comforter’s mutual fund account (the public redemption price on this date, usually the fund net asset value at the close of the preceding business day, is used to calculate the value of your gift).
Split Certificates
Hospice of the Comforter can arrange for a stock or bond certificate to be split if you wish to donate only a portion of the units specified on the face of the certificate. Please refer to instructions above “To Donate Publicly Traded Stocks or Bonds You Hold in Certificate Form.” In your letter to Hospice of the Comforter, please indicate the number of shares (or dollar amount of bonds) you wish to donate. We will also need the social security number of the certificate owner(s). Additionally, please provide current contact information so we can reach you if we need further information. Since splitting a certificate involves re-registration in the corporation’s records, the date of the gift is the date on the certificate issued to Hospice of the Comforter.
Hospice of the Comforter Development Department Contact Information
Bill Avery, Vice President of Development and Communication
or
Marilyn Hattaway, Development Manager
Hospice of the Comforter
480 W. Central Parkway
Altamonte Springs, FL 32714
Phone: 407-682-0808
Fax: 407-682-5737
billavery@hospiceofthecomforter.org
mhattaway@hospiceofthecomforter.org
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