Give the Gift of Stock
Donors have the ability to transfer stocks, bonds or any other securities to The Arc as gifts. Giving the gift of stock that has appreciated in value may allow the holder to avoid paying the capital gains tax.
There are two methods for transferring the ownership of a stock, which vary depending on how it is currently being held:
- If the stock is currently held in certificate form, transferring the physical stock is required. The owner must endorse the stock by signing it in the presence of a guarantor. There may also be a form on the back of the certificate which relates to the transferring of ownership. After the form is filled out and signed, the certificate will be rendered non-negotiable and become transferable.
- Many investors own the electronic version, which is stored in a brokerage account. To gift this stock, the owner should contact The Arc to get brokerage information. The Arc’s brokerage information is shared with the owner’s broker and an electronic transfer is requested.
Things to Remember
- Let The Arc know the stock is being transferred as a donation; include the type and number of shares that will be transferred. This information ensures that we credit you properly and issue the receipt you will need for tax purposes. Your tax credit will be based on the amount of money The Arc gets from the sale of the stock.
- Stock contributed must have been held by you for more than 12 months to garner the greatest tax savings.
If the stock is in certificate form, mail the certificate and a completed stock power form (available from your financial services provider) in separate envelopes to the address below. For security purposes, send the certificate by registered mail with return receipt requested to: Executive Director; The Arc of Story County; 130 S. Sheldon #302; Ames, IA 50014