Maury River below Goshem in Virginia © Tim Palmer

Gift of Securities

Charitable gifts of publicly traded stocks, shares in mutual funds and similar assets can be especially beneficial to donors.

Charitable gifts of publicly traded stocks, shares in mutual funds and similar assets can be especially beneficial to donors. The following are some answers to common questions about securities:

What are securities? Shares of stock in companies that are publicly traded or mutual funds are the most common securities that are given to a charity. Stocks or shares in closely held or private companies may also be given, but special rules apply to them.

Why give securities? Often stocks or mutual funds will be worth much more than the original purchase price. As appreciated property these are subject to capital gains tax. Making a charitable gift of these securities eliminates the capital gains tax that would be due if they were sold for income.

Gifts of qualified non-cash securities to Rivers Foundation of the Americas are deductible, in most cases, for their current fair market value. This includes your purchase price and any increase in their value over time.

What rules apply to gifts of securities? In order to deduct the current value of appreciated securities, they must be owned by the donor for at least a year and a day. Rivers Foundation of the Americas, as a qualified public charity can receive these type of gifts. The gifts are generally deductible up to 30% of the donor's adjusted gross income in the year of the gift. Excess amounts may be deducted over as many as five succeeding tax years.

To receive the full tax deduction of the cost of the stock or mutual fund as well as its increase or appreciation, the stocks or funds must be transferred to rivers Foundation of the Americas. If the donor sells the shares and contributes the cash amount of the securities, it will be taxed at the current capital gains tax rate for the donor. To determine the value of the stock or mutual fund shares take the average of the highest and lowest share price on the day of the stock transfer.

How can the gift be completed? Contact your stockbroker, mutual fund manager or financial planner and indicate your intention of giving your shares to Rivers Foundation of the Americas. Also, contact Peter Lavigne, President of RFA at (503) 274-7704, to share your intention. Representatives of Rivers Foundation of the Americas will talk with you and your broker to complete the paperwork for the gift. We will send you an acknowledgment of your gift and its amount, which should be retained for your income tax purposes. Our legal name is: Rivers Foundation of the Americas, Inc. and our tax ID #: 93-1310665.