Stock

Unlock Greater Impact by Donating Stock Instead of Cash

How It Works

Mark and Linda typically donate $10,000 in cash each year to their favorite charity, the Mount Vernon Ladies’ Association. This year, they donated appreciated stock instead—and the results surprised them.

They have 100 shares of ABC Corp. and a long-term capital gains rate of 20%.
Cost Basis: the shares were purchased for $2,000
Current Market Value: the shares are now worth $10,000
This means the shares have embedded unrealized capital gains of $8,000, and as it stands, Mark and Linda would pay $1,600 (20%) in capital gains tax upon selling them.

WHERE TO GIVE

Area of Greatest Need

Membership

upper garden parterres and greenhouse landscape sky view

Tribute Gifts

#1 Mark and Linda Donate Cash

They keep their stock and donate $10,000 cash.

They receive an income tax deduction of $10,000.

#2 Mark and Linda Sell Stock and Donate

They sell their stock and donate $10,000 cash.

They pay $1,600 in capital gains tax and receive an income tax deduction of $10,000.

#3 Mark and Linda Donate Stock

They donate their stock and keep their cash.

They receive an income tax deduction of $10,000 and save an additional $1,600 in capital gains.

By Giving Stock, Mark and Linda:

received the same tax deduction that they would have for giving cash,
saved $1,600 in taxes they would have owed,
gave the same amount to Mount Vernon, and
cleared out low-basis stock with high embedded gains from their portfolio.

How to Give Stock to the Mount Vernon Ladies’ Association

1. Select the shares of stock you wish to give.

“Long-term:” Those you have held longer than one year.

“Appreciated:” Those with the highest appreciation (the highest amount of unrealized capital gains) typically save you the most in taxes.

2. Transfer them directly to the Mount Vernon Ladies’ Association.

Contact your financial advisor or brokerage to initiate the transfer of these shares in-kind to the Mount Vernon Ladies’ Association’s brokerage account:

DTC Number: Clearing 0164, Code 40
Broker: Charles Schwab & Co.
Account Name: Mount Vernon Ladies' Association of the Union
Account Number: 6031-5048

3. Receive the tax benefits associated with your gift.

Receive an income tax deduction at market value.

Forego paying capital gains tax.

Donating stock can be a strategic way to rebalance your portfolio, minimize taxes, and give from your assets, not just your income.

Help Us Credit Your Incoming Gift

To make sure we can acknowledge your gift and provide appropriate documentation, please complete this form.

Incoming Gift Form

Questions?

Please contact us at [email protected] or 703.799.8647 with any questions you have.

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The Mount Vernon Ladies’ Association of the Union, Tax ID #54-0564701, a charitable corporation located in Virginia with the mailing address of P.O. Box 110, Mount Vernon, VA 22121. The Mount Vernon Ladies’ Association does not provide investment, tax, or legal advice. Please consult with your personal advisors before making financial decisions based on this information. The information presented here is for general educational purposes, is not specific to any individual’s personal circumstances, and may change at any time without notice.