Gifts of Securities

Overview of Tax Benefits:

A gift of appreciated securities held for more than one year may provide significant benefits to you as a contributor, such as:

  • Entitling you to a charitable income tax deduction for the fair market value of the gifted securities as of the date of gift.
  • Eliminating capital gains tax that would ordinarily become due if you had sold the appreciated securities on the open market and donated the proceeds from the sale to charity.
  • Claiming your charitable deduction against up to 30% of your adjusted gross income. Any unused deductions can be carried forward over the next five years.
  • Providing a way to help you to achieve your long-term financial objective of reducing your income and estate taxes.

If you have securities that have declined in value over the years and are interested in donating them to helping senior adults remain independent, you may find it more advantageous to sell the securities first and contribute the proceeds to charity as opposed to donating the securities outright. This strategy should allow you to claim a deduction for both the loss from the sale of the securities as well as the charitable gift.

If you are considering donating stock that is subject to a cash merger or tender offer, it’s important for you to note that you will be subject to tax on the capital gain even though the shares were transferred to us before the tender offer became effective.

You should always consult with your financial advisor before initiating a charitable gift arrangement.

Gifts of appreciated securities could provide even greater benefits to you through Planned Giving.

Ways to Give Securities:

There are two ways to make a donation of securities: by Physical Delivery or through an Electronic Transfer Authorization. Be sure to notify us of your decision.

Physical Delivery:

If you have physical securities, you may deliver them in person, by registered mail, or by courier to our central office. If they are registered in your name, you will need to provide an Irrevocable Stock/ Bond Power Form.

Electronic Transfer Authorization:

Your broker can electronically transfer your securities to LCCA. Because this request must be made in writing we provide an Electronic Transfer Authorization form.

Instructions for the Electronic Transfer of Securities:  

LCCA cannot initiate transfers from your Broker.

Broker Instructions:
Modern Woodmen Further Credit to: Lonoke County Council on Aging Tax ID #   Account # 706-04H79 Broker Contact: Logan Perry   Phone: 501-982-4561