Stocks & Mutual Funds

Giving Appreciated Securities
As long as you have held the security for longer than 12-months, giving through appreciated securities can work as follows:

Sam bought stock 15 years ago for $1,000. The stock has appreciated significantly and is now worth $10,000. Sam decides to donate the stock directly to FD Hope. If Sam itemizes, he will get a $10,000 charitable income tax deduction even though he only paid $1,000 for the stock. Sam avoids paying a capital gain tax on the $9,000 of appreciation ($10,000 minus $1,000). The tax avoided could be $1,800 ($9,000 x 20%). Since he transferred the stock directly to FD Hope, versus selling the stock, he also avoids paying a sales commission to his broker.

Note: Even though many people have seen this type of growth in today’s stock market, the above example is for illustration purposes only. However, at this time, this example does not apply to tax-exempt retirement plans (e.g. IRA’s, 401(k), etc.).

If you are interested in donating securities, there are several ways to make the transfer:

Electronic Transfer – This is a convenient way to transfer your securities. Simply instruct your broker to electronically transfer your securities out of your account into FD Hope’s A. G. Edwards account. Your broker will need our account number and DTC number which can be obtained by calling 828.238.3149 or sending an email to info@fdhope.org. The account name is listed as Familial Dysautonomia Hope.

Certificate Transfer – Transferring your certificate can be as easy as endorsing the back of the certificate and sending it by certified mail to FD Hope. You must sign the certificate in front of a bank officer to obtain a "medallion signature guarantee." (Notary public stamps are not an acceptable guarantor for stock certificates.) A medallion signature guarantee is required on all certificates. Be sure to endorse the certificate exactly as your name(s) appears on the front. For example, if your certificate is listed as “Samuel D. and Deborah M. Cohen”, you will need to sign the certificate exactly as “Samuel D. Cohen”, and “Deborah M. Cohen.” Insert FD Hope’s tax identification number 36-4413933 in the box on the back requesting a social security number or other identifying number of assignee. Mail it by certified mail to: FD Hope, 110 Deerwood Court, Chapel Hill, NC 27517.

Employee Owned Stock in Non-Retirement Plans – If you purchased stock from your employer (e.g. non-retirement E.S.O.P.) you can instruct them to issue a certificate in FD Hope’s name. They will need our tax identification number, and our address as mentioned above.

Mutual Fund Transfers – Contact FD Hope to find out the most efficient way to transfer a mutual fund. We will provide the transfer instructions specifically related to your mutual fund company.

Once a transfer has been completed, please contact us. This is very important, especially if the gift has been transferred electronically to our account or a certificate has been issued in FD Hope’s name, since your name will not be associated with your donation. We would also like to say “thank you” personally as well as provide you with an acknowledgment letter for your tax purposes.

* Assumes a holding period of over 12 months, 20% capital gain tax rate, $9,000 x 20%=$1,800.

** Assumes a holding period of over 12 months, 39% federal income tax rate, and a 6% state income tax rate, $8,200 x 45%=$3,690; $10,000 x 45%=$4,500; however, tax rates vary from state to state.