Gifts of Stock

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Online Donation

Did you know that you can reduce your taxable income by deducting the full fair market value of the securities you donate to the Red Cross, as long as you have owned these assets for at least one year?

For example, if you paid $100 for 10 shares of Computer, Inc. in 1997 and the shares are now worth $200, you can deduct $200—twice as much as you paid for the stock!

Avoid Capital Gains Taxes

Normally when you sell securities that have gone up in value, you must pay capital gains tax on the increase in value. However, by donating the securities to charity, you do not pay capital gains tax.

Determining the Value of the Gift

For income tax purposes, a gift of securities is valued on the date the gift is completed and is equal to the mean of the high and low of the values traded on that date. If securities certificates are mailed, the gift is complete as of the date postmarked. When hand delivered, it is complete when received by a Red Cross representative. When transferred electronically, the gift is complete when it arrives into our brokerage account.

Mutual Funds

The mutual fund transfer process is more complicated than that for stock donations and can take much longer to accomplish. To allow ample time for the transfer to occur prior to year-end, we recommend beginning the process no later than November 15th.

Electronic Transfer of Stock

If your stock is held in a brokerage account, please instruct your broker to transfer the shares to the American Red Cross Bay Area account. You will need our account number and DTC Number for each Brokerage.

Contacts

Bear Stearns: Bruce Blockley, (415) 772-3262

Fidelity: Jessica Howlett, (415) 433-0777

Merrill Lynch: Percy McGee, (510) 208-3805

Morgan Stanley: Theo Taft Schwabacher, (415) 693-6381

Wells Fargo: Mark Cavalier, (415) 396-2318

Before making a gift of stock to the American Red Cross Bay Area, we recommend that you consult your tax advisor or attorney for full advice on the effect of your gift.

If you have actual stock certificates, wish to contribute mutual funds, or would like to participate in the Red Cross Annuity Program—or for more information—please contact Gary Ogburn at ogburng@usa.redcross.org, (415) 427-8171, or Bill Ruettinger at ruettingerw@usa.redcross.org, (415) 427-8989.

ęCopyright 2007, American Red Cross Bay Area Chapter. All Rights Reserved.
85 Second Street, 8th Floor, San Francisco, CA  94105 : (415) 427-8000
Photos: Gene Dailey, Elena Fava Emerson, Bonnie Gillespie.