Gifts of Stock or Securities
Gifts of appreciated stock or other securities can be a mutually beneficial way of contributing to ACF—allowing you to make an immediate impact on the preservation of wild Alaska while receiving a double tax benefit.
When you donate appreciated securities that you have held for at least one year, you can deduct the full fair market value of the securities on your federal income tax return and you completely avoid any capital gains taxes that would have been due had you sold the securities. The key is to transfer the assets to ACF and let us sell the stocks, bonds, or related securities. (If you or your broker sells the asset and donates the proceeds, you will be required to pay the capital gains taxes due.) ACF is able to sell or trade your gifted assets, without tax liability, and put all the proceeds to work protecting Alaska's environment.
Donating stock to ACF is simple and straightforward, usually involving a wire transfer of shares from your brokerage account into ACF’s brokerage account:
- Contact ACF’s Finance Director
Let us know of your intent to make a gift of stock and the nature of the transfer you are considering in order to ensure that we are in fact able to accept your gift. Also let us know if you are making an unrestricted gift, a contribution to one of our endowment funds, or if there is another purpose. The Finance Office will provide you with all the information you and your broker or financial representative will need to execute the wire transfer. If you plan on making a transfer of securities other than by wire—such as a transfer of paper stock certificates, mutual fund shares, or closely held stock in your privately held company—we will provide you with special instructions and information.
- Contact your broker or other financial representative
Provide him/her with the wire transfer instructions and contact information that ACF’s Finance Office has provided to you. Be sure to copy ACF’s Finance Director on your correspondence and let us know when the transfer is being made so that we can ensure a timely transfer of the stock, and ideally achieve the optimum market value, both for your benefit and for ACF’s.
- Claim your tax benefits
As the donor, you are responsible for determining the market value of the securities that you contribute. Most often, for publicly traded stock, the market value will be the mean of the high and low selling price of the stock on the date that it is transferred into ACF’s brokerage account, multiplied by the number of shares transferred. If you are transferring stock that does not trade daily, is in paper certificate form, or is otherwise not a routine security, other IRS rules will apply in determining market value. ACF will send you a thank you letter for your gift confirming the type of stock, number of shares, and the date on which the stock transferred into our account. Your financial or tax advisor can assist you in determining the appropriate value of your stock. You will also need to include form IRS form 8283 with your federal income tax return in order to claim a charitable tax deduction for your gift of stock.
One more thought: If you, like many, still hold stock that has depreciated, consider selling the stock and donating the proceeds to ACF . You will still be able to claim a charitable tax deduction for the market value of the stock based on the date that you transfer it to ACF, and you may be able to further reduce your income tax obligation by reflecting the loss in value on your federal tax return.
For more information or to initiate a gift of stock, bonds, or other securities to the Alaska Conservation Foundation, e-mail Toby Smith, Director of Finance and Operations, or call 907-276-1917.
The information provided on this website is for general educational and public benefit purposes. Concepts described are only effective when used as part of an overall, carefully considered estate and financial plan, and inappropriate application of these concepts can have negative consequences. Anyone viewing this material is strongly encouraged to seek counsel from a qualified legal, accounting, and/or financial advisor prior to applying any of the information and ideas presented within these web pages to his or her own particular situation.
