Gift of Stock

Make your charitable dollars go further through a gift of stock

A charitable contribution of long-term appreciated securities – i.e. stocks, bonds and/or mutual funds that have realized significant appreciation over time – is one of the most tax-efficient ways to give. Donating stock, instead of cash, benefits both parties. Most charities, hospitals, schools and other nonprofit organizations will accept stock as a gift or donation. 

If the stock has increased in value from the time of purchase, the owner can avoid paying the capital gains tax by donating the security to another party. When the security is being donated to a charitable organization, the total amount will still be eligible for a tax deduction. Because taxation is avoided on the stock donation, the donor will be able to make a larger donation. 

To transfer stock to the Jewish Community Federation and Endowment Fund:

  1. Complete the Gift of Securities Transfer Authorization Form.
  2. Call Steffi Liem, at 415.512.6238, if you need our account number at your brokerage house.
  3. Send the original copy of the attached Gift of Securities Transfer Authorization form to your broker.
  4. Very important: Fax, email or mail a copy of the forms to Steffi Liem:

     Email: Steffi Liem
     Fax: 415.543.4134
     Jewish Community Federation and Endowment Fund
     121 Steuart Street
     San Francisco, CA 94105

The Mechanics of Stock Donations

Your Charitable Tax Deduction:

For tax purposes, your deduction will equal the average of the high and low on the date of the gift. The gift date is the day the securities were transferred to the Federation.

Amount Credited to your Pledge:

It is Federation policy that your account is credited by the amount the Federation receives from the sale of the stock, net of any fees.

For example:

Let's say you make a $1,000 donation to a charity. You could either give cash or donate stock. Let's assume that the you bought stock for an original purchase price of $700, but it is now worth $1,128.55. To make it simple, we’ll assume capital gains tax is 30% of the stock's appreciation. Selling the shares for cash would net about $1,000 after capital gains tax (1,128.55 - (1,128.55 - 700)*0.30). In this case, there is no difference between donating the entire stock or giving cash, as both choices will cost you $1,000. However, the charity can receive more benefit from a stock donation, as they will receive a gift valued at $1,128.55, instead of the $1,000 in cash.