Give the Gift of Stock

One of the most financially wise ways to give is through the transfer of stocks. Donors have the capacity to allow stocks, bonds or any other securities to be transferred as gifts to The Arc. Giving the gift of stock has significant benefits for the contributor. If the stock has appreciated in value, the holder can avoid paying the capital gains tax by giving it as a gift.

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, then transferring the physical stock is required.  The owner must endorse the stock by signing it in the presence of a guarantor, which can be their bank or broker.

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.

Often there will not be a physical copy of the stock, as many investors own the electronic version, which is stored in a brokerage account. To gift this stock, the owner should gather the brokerage account information of the party they are gifting. The next step is to contact The Arc’s broker, pass on the new account information, and order the electronic transfer to the other party.

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.
  • Avoid the capital gains tax entirely by making a charitable gift of stock. Please note, that the stock contributed must have been held by you for more than 12 months to garner the greatest tax savings.

Stock Certificates

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

For more information about how to transfer securities or to learn the brokerage firm for The Arc, please contact the Executive Director at The Arc of Story County at 515-232-9330 or by email.
Thank you for your generous support of The Arc!