Securities: Stocks and Mutual Funds

Stocks

If you own stocks that have increased in value since their purchase, you can benefit by using them to make a charitable gift to ChildFund. You can deduct the fair market value of the securities (held for at least one year and a day) and pay no capital gains tax.

If you own stock that has decreased in value since you purchased it, you can sell the stock and claim it as a “loss” for income tax purposes. By giving the cash proceeds to ChildFund, you receive an income tax deduction.

How to transfer stock to ChildFund by electronic wire or physical transfer:

Electronic Transfer: Ask your broker to wire transfer your gift to ChildFund’s account at Davenport & Co. using the following information:

Physical Transfer: If you are in possession of a stock certificate, you will need to sign a stock power for each stock certificate you transfer to ChildFund. If the stock certificate is registered in two names, both individuals need to sign the stock power and the stock power must be signature guaranteed.

Sign the stock power exactly as it is on the face of the certificate and mail it to The Office of Planned Giving, ChildFund, 2821 Emerywood Parkway, Richmond, VA 23294. Please mail the stock power and stock certificate in separate envelopes for purposes of security. Upon receipt, your gift will be acknowledged for tax purposes.

Giving a Gift of Mutual Funds

The transfer of mutual fund assets is usually done electronically, and most mutual fund companies have their own guidelines for transferring their funds. Upon your instructions, your mutual fund’s agent will transfer the shares to ChildFund.

For tax purposes, a mutual fund is not considered a gift until it has been transferred out of your name and into the name of ChildFund. This is important, as the actual date of the transfer into ChildFund’s account determines the completion, value, and deduction of the gift for tax reporting purposes.

Important: Whether you are electronically transferring stock, mailing a stock certificate or giving a mutual fund gift, please let us know. Knowledge of your gift allows us to track its progress, disburse your gift correctly and provide you with an acknowledgement letter for your tax records.

Please call 1-800-762-9593 for more information.