With the stock market regularly breaking records at the closing bell, many of your investments are likely worth more today than what you originally paid for them.
Time to sell? If you do, you might have to pay capital gains taxes. There’s a better option that provides you with valuable tax incentives as well as the satisfaction of supporting a cause close to your heart: Give your stock to United Way of Berks County.
When you give UWBC appreciated securities that you’ve owned for more than one year, you will receive two tax benefits:
You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their lower original cost.
You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you sold the stock.
Reap the Rewards
To realize full tax benefits from your gift, keep the following IRS guidelines in mind:
Donate long-term appreciated property. For short-term assets (owned one year or less), only the amount you originally paid is deductible.
Watch the ceiling. The gift deduction for long-term capital gain property is limited to 30 percent of your adjusted gross income in the year of your gift, but the excess is deductible over the next five years.
How to Make a Gift of Stock
If you have the physical securities:
Hand-deliver them to us; or
Mail us the stocks and stock power in separate envelopes for your protection.
If you don’t have possession of the physical securities:
Instruct your broker to electronically transfer your intended shares; and
Ask your broker to notify us once the transfer is complete.
We’re Here to Help
To discuss using your stock holdings to support our mission, feel free to contact Angie Finney at 610-685-4570 or firstname.lastname@example.org. Together with your advisor, we can help you fulfill your charitable goals and protect your assets from unnecessary taxes.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
United Way's Mission
United Way of Berks County improves lives by inspiring collaboration, volunteerism and financial support to build a stronger community.
United Way's Vision
The United Way of Berks County will enhance the quality of life in our community by mobilizing the desire and capacity of people to care for one another.
United Way's Core Values
United Way of Berks County's role as a leader in the health and human services sector requires all persons involved with United Way of Berks County to assume responsibility of maintaining the public's trust. To fulfill this obligation to the community and to ourselves, our Core Values provide the foundation on which we base our actions and decisions. They are:
A charitable bequest is one or two sentences in your will or living trust that leave to United Way of Berks County a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.
an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan
The official bequest language for United Way of Berks County is: "I, [name], of [city, state, ZIP], give, devise and bequeath to The United Way of Berks County, Inc. [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
able to be changed or cancelled
A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.
cannot be changed or cancelled
tax on gifts generally paid by the person making the gift rather than the recipient
the original value of an asset, such as stock, before its appreciation or depreciation
the growth in value of an asset like stock or real estate since the original purchase
the price a willing buyer and willing seller can agree on
The person receiving the gift annuity payments.
the part of an estate left after debts, taxes and specific bequests have been paid
a written and properly witnessed legal change to a will
the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will
A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to UWBC or other charities. You cannot direct the gifts.
An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.
Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.
Securities, real estate or any other property having a fair market value greater than its original purchase price.
Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.
A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.
You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.
You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to UWBC as a lump sum.
You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to UWBC as a lump sum.
A beneficiary designation clearly identifies how specific assets will be distributed after your death.
A charitable gift annuity involves a simple contract between you and UWBC where you agree to make a gift to UWBC and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.