Giving Stocks Instead of Cash

Donate appreciated stocks, bonds or mutual funds. Receive the full value of the donation and avoid capital gains tax. Applicable to annual membership, renovation or endowment.

If you own stocks, bonds, or mutual funds that have increased in value since their purchase, selling them may cost you considerable capital gains tax. Donate your securities to the Strand-Capitol for your membership or other contribution instead of writing a check. Many supporters do this as a wonderful way to support the Center, without invading cash accounts.

Gifts of Appreciated Securities
A stock portfolio that does well in the market is a good thing. The downside is when they are sold, capital gains tax is levied by the federal government. You can reduce – or even avoid – federal capital gains tax by donating appreciated securities to the Strand-Capitol Performing Arts Center.

By donating publicly traded stocks held for more than one year, not only do you avoid the capital gains tax, you can take the full fair market value of the stock gift as a charitable deduction on your income tax return.

If you want to keep an appreciated stock in your portfolio, giving the stock to the Strand-Capitol and using cash to buy the same stock through your broker provides the same income tax deduction with a new, higher basis in the stock. Check with your broker or financial consultant for details.

If you have stock losses, sell the stock to realize the loss and take the deduction for tax purposes. Then generate a charitable contribution deduction by donating the cash proceeds of the sale.

The date that your shares are received in the Strand-Capitol’s account is the effective date of your gift. The value of your contribution is calculated as an average of the high and low prices on that date.

Donating securities is a straightforward process:

  1. Decide the amount of your intended contribution
  2. Decide which stocks, bonds or funds you want to sell
  3. Call the Development Office at the Strand-Capitol for our participating brokerages and account numbers
  4. Call your broker to relay your instructions.
    We will send a receipt with the amount of the donation for your tax records.

It’s that easy!

For questions or to receive additional information, contact the Development and Advancement Office at 717-846-1155.