There are a few ways to donate stock to charity, and it’s important to ensure that the recipient organization can accept the donation. Many charities are set up to receive stock gifts, but you’ll need to provide specific information for the transfer.
Through a Donor-Advised Fund (DAF)
One of the easiest ways to donate stock is through a donor-advised fund (DAF). This allows you to donate the stock to the fund, take an immediate tax deduction, and then decide later which charities will receive the funds. Major investment firms like Fidelity Charitable and Schwab Charitable offer DAFs.
Direct Donation to the Charity
If you want to donate directly to a charity, you’ll need to contact the charity and find out if they can accept stock donations. If they can, they may have a donation form for you to complete, which will include details like:
- Your information (name, address, account number)
- Stock details (number of shares, company name)
- Recipient information (charity’s name, IRS EIN number, and brokerage account details)
Physical Certificates
If you hold stock in physical certificate form, you’ll need to sign the back of the certificate in the presence of a guarantor, which is usually the bank or broker, to transfer ownership. Once these things are completed, the stock becomes non-negotiable and thus transferable.
The transfer is done through your brokerage account if the stock is held electronically. Most brokerage accounts insist on written and signed authorization with specific instructions on the transfer.
Financial Industry Regulatory Authority (FINRA). "Understanding the Brokerage Account Transfer Process."
Transferring Stocks Between Institutions
If you transfer stocks between different brokerage firms (e.g., from your personal account to a charity's account), you’ll need to work with your brokerage firm and the receiving institution to ensure the transfer is completed smoothly.
Tax-Smart Ways to Support Platelet Disorder Support Association
Are you 70 ½ or older? By making a gift directly from your IRA through a Qualified Charitable Distribution (QCD), you can support our mission and reduce your taxable income. Since the gift counts toward your required minimum distribution but is excluded from your taxable income, it can lower your tax burden.
You can also support PDSA with a grant from your donor-advised fund (DAF). This is a tax-efficient way to give since contributions to a DAF are tax-deductible in the year they are made, and you can recommend grants to PDSA at a later time.
Maximize your charitable impact with a stock donation. Gifts of appreciated securities, such as stocks or mutual funds, that have been held for over a year are a wonderful way to support PDSA while potentially realizing important tax benefits for yourself.
If the stocks are in your possession, the stock certificate(s) can be delivered along with a completed Stock Power and a Letter of Intent to PDSA. The Letter of Intent should state the intention of making a gift of the specific shares being tendered. For example, a Letter of Intent might read, “I hereby am delivering to and making a gift of (XX) shares of XYZ Corporation to Platelet Disorder Support Association as a charitable gift.”
If you want to wire gifts of stock or the proceeds of a stock sale to PDSA, please click on the link to the form below and the appropriate information will be sent to you.