Stock Transfer

If you are an investor, your stocks have probably appreciated greatly since you purchased them. If you want to give money to a charity, a charity such as the Middle Georgia State University Foundation, right now is an excellent time to consider donating stock.

Why? Because donating stock directly to MGA is one of the most “tax-smart” ways to give. By donating stock that has appreciated for more than a year, you are actually giving 20 percent more than if you sold the stock and made a cash donation. Why? Because you are avoiding capital gains taxes. If you donate the stock directly to a charity, there are no capital gains tax to pay. And there is another added bonus, you are still eligible to deduct the full fair-market value of the asset you donated from your income taxes, up to the overall amount allowed by the IRS. Please consult with your tax advisor and investment partner for details.

You may be concerned about the hassle or paperwork, but it is much less work than you might think. Many large financial institutions can help you do this easily. If your financial institution has a donor-advised fund, this can be an extremely simple process for current customers, just ask your financial institution, or contact us and we can provide a list of entities that support donor advised funds. A donor-advised fund is like a charitable investment account which can be used exclusively to support those charities for which you care deeply. Instead of donating multiple blocks of stock to multiple charities, you make one donation which is used to fund your Giving Account. There is one form to file with your tax return instead of many. Again, sounds difficult but is actually an easy exercise.

Please remember, to be eligible for a charitable deduction for a specific tax year, donations of stock need to be received by the end of that year. Because different assets take different amounts of time to be transferred, you should initiate your transactions as early as possible.

The MGA Foundation accepts gifts of stock from donors who want to make a difference in the lives of our students. If you would like to consider this type of gift, additional information may be found here. If you’d like to speak with someone further, please contact the Office of Advancement at 478.471.2732.