Take STOCK in United Way Fox Cities
You can realize two tax savings by contributing stock as a gift to United Way:
A charitable deduction
Federal law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income.
Avoiding capital tax gains
Stock contributors may not have tax liability on the difference between what they paid for the donated stock and its current fair market value (FMV); i.e., there may not be tax on the capital gains.
HERE'S HOW IT CAN WORK FOR YOU!
You decide to make a gift to United Way. Payroll deduction has always been easy, but this year, you decide to see if a gift of appreciated securities might be more cost-effective for you.
Assume that you purchased 20 shares of XYZ Corporation in 1994 for $250 and the shares are worth $1,000 today. Also assume you are in the 28% federal income tax bracket. Here are the comparisons for making a $1,000 gift to United Way*:
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Illustration is based upon tax laws in effect as of June 20, 1999
An interactive chart on gifts or stock can be found on the internet at http://stock.unitedway.org.
A gift of stock would result in a $150 savings over the same size gift of cash.
*Always consult your personal financial or tax advisor to see how a gift of securities can benefit you. The stock must be long-term, owned at least one year and a day.
The previous examples illustrate the potential value of a stock gift and highlights some of the available benefits. We strongly advise that you contact your accountant or other tax advisor to determine the exact tax effect of your donation of stock to United Way.
Ways to give
If you hold securities in 'street name', that is, you do not have physical possession of the stock certificate, please notify your broker to initiate 'broker-to-broker' transfer. This will transfer the donated stock from your brokerage account to United Way's brokerage account, at which time United Way will liquidate the donated stock. Call United Way Fox Cities for specific instructions regarding disposition.
If you have physical possession of the actual stock certificate, you may send the unendorsed stock certificate by express, registered or certified mail, return receipt requested, to United Way Fox Cities. At the same time, the executed stock power should be sent separately to United Way Fox Cities at the same address. Stock certificates may also be delivered by hand. Copies of the required stock power may be obtained from a bank, broker, or United Way.
Not everyone owns individual shares of stock, but most people invest in mutual funds. Like stock, mutual fund shares can be contributed to United Way and carry the same tax benefits associated with outright gifts of stock. To assure efficient processing, please give one month's notice before making such a gift.
Some companies permit employees to contribute restricted stock to United Way. Please check with your benefits office to see if your employer permits restricted stock to be contributed to charity.
Valuation for tax purposes and date of gift
The date of the gift is the day the stock passes from your control. The value for income tax purposes is the mean between the high and low quoted selling price on that day. Your gift will be acknowledged by United Way with the valuation of your gift for tax purposes.
Estimate your savings!
Enter: http://stock.unitedway.org to estimate the actual savings for your gift!