Procedures for Making a Gift of Securities
When you make a gift of appreciated securities held more than one year, you generally receive an income tax charitable deduction for the full fair market value of the securities contributed and avoid capital gains tax consequences. Thus, the after-tax cost of giving such securities is less than making an equivalent gift of cash.
If you hold securities that have declined in value relative to their cost, it is generally advisable to sell them and donate the cash proceeds. In this way, you can establish a tax loss on the securities sold and claim an income tax charitable deduction for the cash gift.
Under separate cover, please send a stock power for each security so that ownership of the certificates may be transferred to the church.
In either case, please send a confirming letter to the church to the attention of the Executive Director. It should state the stock security you are donating, the number of shares, the approximate date of transfer, and the estimated dollar value of the donation. The letter should also specify where the donation should be allocated.