gifts of stock for students

If you're considering a major gift to the Valencia Foundation or planning your end-of-year gift, a gift of public company stock to charity provides two major benefits. First, there is a charitable deduction for the value of the stock. Second, the charity does not pay tax on the sale of the stock and you, therefore, bypass the capital gain.

What will the market do this year? Perhaps the best answer is, “It will go up and down.” Stock returns vary to a significant degree each year. However, long-term stock returns have been reasonably substantial.

Between 1990 and 2010, the average stock return was about 6%. While there was a very substantial increase during 1990-2000 and decreases during 2002 and 2008, the total return over two decades was approximately 6%.

Longer holding periods have generally resulted in higher total returns. The total stock return for seven decades between 1940 and 2010 was in excess of 10%. Returns for long periods of time have paralleled this amount.

You can select to support education in our community! Because many stocks have increased in value over time, you may hold stocks with substantial appreciation.  If you’re considering a major gift or end-of-year gift, a gift of public company stock to support education through the Valencia Foundation provides two major benefits. First, there is a charitable deduction for the value of the stock. Second, the charity does not pay tax on the sale of the stock and you, therefore, bypass the capital gain. 

Click here for a video and example of this process.

Two fairly common reasons for making a substantial gift of stock are that you may have sold an appreciated asset with a large capital gain or you have good income. If you have a large gain or substantial income, you may want to offset that gain or income with a charitable deduction through a gift of stock. Because you receive both the charitable deduction and a bypass of capital gains tax, there is a double benefit for your gift of stock.

How to Make a Stock Gift

If you would like to make a gift of stock to support students through the Valencia Foundation, please call 407/582-3150 for assistance or to have your questions answered about this process.

Most stock is held in an account at a brokerage firm. Relatively few people now wish to hold the actual certificates in their safety deposit box. If you hold actual certificates, you may mail the certificate and a signed stock power in separate envelopes to the charity. Because most stock is held by the brokerage firm, the stock is transferred directly from the account at the brokerage firm to an account for the charity.

Source: © Copyright 1999-2010 Crescendo Interactive, Inc.

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