More Ways to Give
The gift of appreciated securities – stocks, bonds, or mutual funds that have grown in value – can be an easy way of making a contribution, one that may have tax advantages for you. You might even be able to consider a larger gift than you would have otherwise given – the size you wish you could make!
Do I have to pay capital gains tax on the stock if I transfer it?
If you transfer long-term held stock to a 501(c) 3 charitable organization, such as MFSA (rather than selling the stock and giving the cash) you do not have to pay the capital gains tax on the appreciated value of the stock and you can take a charitable deduction for the full current value of the stock. (If you transfer stock that has not been held long-term, your deduction is limited to your original cost basis for the stock.)
How do I make a gift of stock?
For stock held in your brokerage account: This stock can be electronically transferred to MFSA.
To make this gift of securities, call the MFSA Office (202-546-8806) or email email@example.com.
You will receive transfer instructions to pass on to your broker. Often the arrangements can be completed by telephone; this is one of the easiest ways of making a gift!
For stock for which you hold the actual stock certificates: You will need to take the following steps:
1. Be sure to sign the certificates in the presence of a guarantor (your bank or brokerage can usually do this).
2. On the back of the certificate there should be some blanks to fill in for transferring ownership. In the appropriate spaces and in the guarantor’s presence, sign your name (or names, if joint) exactly as your name(s) appears on the face of the certificates.
3. In the blank space between the words "appoint__________________attorney”, fill in “Janney-Montgomery Scott.” The certificates are now nonnegotiable.
4. Send the certificates to MFSA through the U.S. mail along with a letter stating your intent to give the named securities to MFSA. MFSA’s postal address is 212 East Capitol Street, NE, Washington, DC 20002.
For gifts to be credited to you in the current calendar year, the electronic transfer from your account or the postmark on the transmittal of the stock certificates must be no later than December 31.
After we receive verification of the electronic transfer or receive the certificates, we will send you an acknowledgment letter showing the date and value at the time of transfer. You can use this letter for your income tax records.
Questions? Contact the MFSA Office at (202-546-8806) or by email at firstname.lastname@example.org
Giving Through Your IRA Account
Contribute from Your IRA
In many cases, people over the age of 59 ½ who itemize charitable deductions can withdraw retirement funds and give them to MFSA while claiming an offsetting charitable deduction. The amount you withdraw will be "taxable income" to you, but the income tax can then be offset by the charitable deduction. Please check with your financial advisor to see if this is something you can take advantage of.
Name MFSA as a Beneficiary in Your IRA
Did you know that MFSA can be named as a beneficiary for your IRA? Naming MFSA as a beneficiary for your 401(k) or 403(b) plan can eliminate estate tax your IRA plan would be subject to as well as the income tax the balance of your IRA account is subject to when received by a non-charitable beneficiary. Please check with a tax advisor to see if your estate can benefit from this.
A Renewed Opportunity to Support MFSA
Tax-Free Charitable Giving Through IRA Distribution
If you are 70.5 years of age or older and have an IRA, you can donate a portion of the IRA to your favorite charity (such as MFSA!) and owe no tax on the withdrawal. Persons 70.5 and older are required by law to make a minimum annual withdrawal. Normally, a withdrawal from an Individual Retirement Account (IRA) is taxable income. As a part of the economic rescue package passed by Congress in the fall of 2008, the IRA rollover provision of the Pension Protection Act of 2006 has been renewed for 2008 and 2009. This means you can donate a portion of an IRA to your favorite charity (such as MFSA!) and owe no tax on the withdrawal.
Amounts transferred to charity count towards the required minimum annual withdrawal, yet do not add to your taxable income. Since you are not being taxed on the income that you are taking out of your account, you cannot take a charitable deduction on your taxes for this gift.
Who is eligible: persons 70.5 and older with traditional or Roth IRAs [not 401(k) or 403(b) plans, nor other tax-deferred accounts].
When: Tax Years 2008 and 2009. Transactions must be completed prior to December 31 of each year to qualify for that tax year.
Amount: Up to $100,000 a year. A couple with separate IRAs could each give up to that amount in one year.
Why? Because your donation to the MFSA will sustain programs on
And Progressive initiatives
How: Gifts must be made directly to qualified charities. This has to be an outright gift – you cannot for example, roll this into another charitable gift such as an annuity. IRA gifts may not be given to donor advised funds or private foundations. MFSA is a qualified charity. These gifts must be distributed directly to the charity from your IRA, not cashed out and then sent to the charity.
For more information: As with any charitable gift, you should consult with a financial advisor when making a decision to give from your IRA. Benefits may vary. For questions or assistance in completing this gift please contact the MFSA office at 202-546-8806.
MFSA is a 501(c) 3 organization and all contributions are tax deductible, as provided by law.