Giving Stocks and Securities

Consider making a charitable gift of your stocks and securities. If you have appreciated securities (stocks, bonds, mutual funds) that you have owned for at least one year, you may want to consider contributing them as a gift to United Way of Roanoke Valley. It's a generous and smart way to invest in the health and vitality of our community.

Benefits of giving securities 1. Avoid capital gains taxes
By contributing securities that have appreciated in value to United Way, you avoid the capital gains taxes you would otherwise owe if you sold the securities for your personal benefit.

2. Take a charitable tax deduction
For federal income tax purposes (including alternative minimum tax purposes), you can deduct the value of the securities on the date of your contribution. The net value of your contribution is the average between the high- and low-quoted selling price on the date that the securities passed from your control. Your gift will be acknowledged in writing by United Way for tax purposes.

3. Give a larger gift
A gift of stock may allow you to make a larger charitable contribution than would

be possible with cash or payroll deduction.

How to give gifts of stock To contribute shares that are held at your brokerage house, trust department or financial institution, do the following:

2. United Way will provide complete instructions and a transfer form that you can

use to direct your broker to transfer stock directly to United Way's brokerage account.
If you have physical possession of the actual stock certificates you would like to contribute, do the following:
1. Notify Chris Rouse at 777-4207 or email at chrisr@uwrv.org.
2. In one envelope, send by certified/registered mail (or deliver in person)

unendorsed certificate(s) and a brief letter of transmittal stating your name,

address and that you intend to transfer the named stock and number of shares

as a gift to United Way of Roanoke Valley, 325 Campbell Ave., Roanoke, VA 24016.

3. In a separate envelope to the same address, send one stock power form for

each security. Stock power must be signed (with signature guaranteed), leaving

all other spaces blank. Include a photocopy of the transmittal letter that

accompanied the stock. A stock power form may be obtained from a bank, broker

or United Way.

the shares are worth $10,000. If you sold the stock, you would realize an $8,000

capital gain. With current tax rates, you could owe as much as $1,600 in federal

capital gains tax.

You decide to make a $10,000 charitable gift to United Way. You usually make

your gift by payroll deduction or check, but decide to see whether a gift of stock

would be more cost effective for you. Your comparisons are (federal tax benefits

only) as follows.

The above savings are realized only when stock is transferred directly to

United Way. Sale of stock and donation of proceeds may subject donor to capital

gains tax. This example illustrates the potential value of a stock gift and highlights

some of the maximum available benefits. These benefits depend upon a number of things, including the amount of the stock's appreciation, your adjusted gross income

and current federal/state tax rates. We strongly advise that you contact your

accountant or other tax advisor to determine the exact income tax effect of any donation.