A gift of securities may provide significant benefits, such as:
- Increased value for your gift to Africare and decreased cost to you.
- A charitable income tax deduction for the fair market value of the gifted securities.
- Elimination of capital gains tax that would ordinarily become due if you had sold the appreciated securities on the open market and donated the proceeds of the sale to Africare.
Here’s an example. Let’s say you bought 100 shares of Wyeth stock at $10/share, and let’s say it is now worth $30/share. If you were to sell it in order to give Africare a gift of $3,000, you would have to pay capital gains taxes on the difference between the value when you bought it (the basis) and the value on the day you sold it. In this example, you would be paying capital gains taxes on $2,000. So not only would you be making a very generous gift of $3,000 to Africare; you would also be paying federal taxes (and in some cases, local or state taxes as well). If you give the stock outright to Africare, we receive the full value of $3,000 and you may claim the $3,000 gift as a deduction on your tax return ― so you actually save money! So please think about a stock gift to Africare. Here’s how to do it.
1. Contact Merrill Lynch, where Africare’s account is held:
Michaela P. Huelbig, VP, WMA
Wealth Management Advisor
1152 15th Street, N.W., Suite 6000
Washington D.C. 20005
Telephone: 1-202-659-6131 or 1-800-429-9493
Or visit Michaela Huelbig’s Web page
You will need this information about Africare’s account:
The legal name of our account: Africare
The account number: 749-04008
The DTC number: 5198
2. Notify Africare. It is essential that you or your broker notify us that the gift is being electronically transferred into our account, because the stock transfer will arrive without identification. We will not be able to provide you with a receipt for tax purposes without that information. Please:
- Confirm the number of shares, the name of the stock and the date of the transfer.
440 R Street, N.W.,
Washington, D.C. 20001
If you wish to transfer the actual stock certificates, please mail the executed certificates to:
Attention: Office of Finance and Management
440 R Street, N.W.
Washington D.C. 20001
You may want to request confirmation from the U.S. Postal Service or other mailing service.
Whether you prefer to transfer securities electronically or physically, Africare will send you a receipt for tax purposes. The tax deduction is based on the average price of the stock on the date of its transfer to Africare.