Stocks and Securities
| When you donate marketable appreciated securities that you have held for at least one year, you not only give a lifetime gift to United Way, but you also may realize tax savings. You avoid the tax on the capital gains resulting from the increase in value of the securities. These taxes will have to be paid if you sell the securities for your personal benefit. For federal income tax purposes, you can deduct the value of the securities on the date of contribution. The value of the contribution is the average of the high and low quoted selling price on the date the securities pass from your control. Deduction for this type of gift is subject to an annual limitation of 30 percent of your adjusted gross income. Any excess can be carried forward for a period of five years. Contact your tax adviser to determine the amount of the excess that may be deductible in any carry-over year. Your gift will be acknowledged by United Way of Greater Cleveland, indicating the valuation of your gift for tax purposes, which will also serve as your IRS receipt for tax-deduction purposes. You can also realize tax benefits if your securities have depreciated in value. By selling your securities at their depreciated price and giving the cash from the sale to United Way of Greater Cleveland, you can receive a charitable deduction for the cash donated and can claim a short- or long-term capital loss on the difference between your cost for the securities and the fair market value on the date you sold the security. There are two ways to donate stock to United Way of Greater Cleveland... If you hold securities in "street name," that is, you do not have physical possession of the stock certificate, please notify your broker to initiate a "broker-to-broker" transfer. This will transfer the donated stock from your brokerage account to United Way's brokerage account, at which time United Way will liquidate the donated stock. Provide United Way's finance division with the following information regarding your gift:
United Way of Greater Cleveland 1331 Euclid Avenue Cleveland, OH 44115 (216) 436-2132 If you have physical possession of the actual stock certificate, please send each unendorsed certificate and a brief letter of transmittal that states your name and address and that you intend to transfer that stock as a gift to the address above. Please deliver the above via first class mail or by hand. Under separate cover, send one stock power for each security to the above address and include one photocopy of the transmittal letter that accompanied the stock. United Way will sell your securities and send you an acknowledgment of this transaction, which will also serve as your IRS receipt for tax-deduction purposes. Doing the math Let's say that 10 years ago you purchased publicly traded stock for $4,000 that is currently valued at $10,000. If you sold the stock, you would realize a $6,000 capital gain. Under current tax rates, you could owe $1,200 in capital gains tax. This year, you decide to make a $10,000 gift to United Way, the amount you usually donate through payroll deduction or check. This year, however, you decide to see whether a stock gift would work better for you.
The above examples assume that the donor is entitled to deduct the entire fair market value of the contribution and that the donor's deductions are not limited by the rules applicable to the Alternative Minimum Tax. Because each taxpayer's situation is different, and because your situation may substantially limit or eliminate your ability to deduct the amount of the contribution, we strongly advise that you contact your accountant or other tax adviser to determine the exact income tax effect of your donation of stock to United Way of Greater Cleveland.
| ||||||||||||||||||||||||||||||||
Give Now
For more than 95 years, United Way of Greater Cleveland has been focused on programs that improve the lives of those around us – but we can’t do it without your help. Whether you are a new donor or you’ve been a loyal contributor, your support can help strengthen our community at this critical time.
How I Live United
When we reach out a hand
to one, we influence the
condition of all. That's what
it means to LIVE UNITED.
We want to know how you
LIVE UNITED. How do you get involved? What organizations, causes and communities are close to your heart? How do you "Give. Advocate. Volunteer."?
Upcoming Events
September 2, 2010
Enjoy a pancake breakfast for only $5 and help our community when United Way kicks off its 2010 Campaign. Join us on Public Square from 7 to 10 a.m.
More info
September 14, 2010
Enjoy a day on the links with Browns alumni at United Way's 13th Annual Celebrity Golf Tournament at Hemlock Springs Golf Club in Geneva.
More info
Friday, September 24, 2010
Come One, Come All to the Rock United Benefit Concert at the Barley House on Sept. 24. The concert is presented by Oswald Companies and featuers popular Ohio natives and concert headliners Red Wanting Blue.
More info
Our Mission
United Way of Greater Cleveland is a leader in addressing health and human service needs through convening partnerships, funding programs, generating resources, and advocating for public policy to support our community's priorities.