Stocks and mutual funds that have increased in value and been held for more than one year are one of the most popular assets to use when making a gift to St. Mark's. Making a gift of securities or mutual funds offers you the chance to support our work while realizing important benefits for yourself.
When you donate appreciated securities or mutual funds you have held more than one year, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.
St. Mark’s School of Texas Brokerage Account
Robert W. Baird & Co., Inc.: 7966-1885-1-FT30
Contact: Richard Davis, (214) 696-3800
Tax Identification Number: 75-0827460
DTC Transfer Number: 0547
Please advise St. Mark’s of any transfers into the above account by emailing Scott Jolly at jollys@smtexas.org.
You can give St. Mark's stocks and mutual funds in several ways:
As an outright gift. When you donate securities to St. Mark's, you receive the same income tax savings that you would if you wrote us a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20 percent. Making a gift of securities is as easy as instructing your broker to transfer the shares or, if you have the physical securities, hand-delivering or mailing the certificates along with a stock power to us in separate envelopes. (Using separate envelopes safeguards your gift—the certificates will not be negotiable without the stock power.) Click here for specific instructions on how to transfer securities.
As a transfer on death (TOD) or payable on death (POD) account. By placing a TOD* or POD designation on your brokerage or investment account, that account will be paid over to one or more persons or charities after your lifetime. It is not necessary for the TOD/POD designation to transfer all of the account solely to charity—you can designate a certain percentage of the account. With a TOD/POD account, the beneficiary you name has no rights to the funds until after your lifetime. Until that time, you are free to use the money in the brokerage account, to change the beneficiary, or to close the account.
As a gift in your will or living trust. If you aren't ready to give up these assets during your lifetime, a gift of securities through your will or living trust allows you the flexibility to change your mind at any time. You can continue to receive dividends and participate in shareholder votes, and the securities are still yours if you need them. In as little as one sentence you can ensure that your support for St. Mark's continues after your lifetime.
As the funding for a charitable gift annuity. Funding a gift annuity with appreciated securities or mutual funds will not only provide you with reliable payments for life and allow you to make a major gift to St. Mark's, but it can offer numerous financial benefits. First, your annuity payments might be more than the dividends you would receive each year from the securities. Second, you will receive a federal income tax charitable deduction (when you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if selling the securities.
As the funding for a charitable remainder trust. Highly appreciated securities are one of the best ways to fund a charitable remainder trust. You may be reluctant to sell such assets directly because of the tax you would pay on the gain; however, if you transfer the assets to a charitable remainder trust, the assets can be sold without incurring the capital gains tax. The trustee can then reinvest the proceeds in order to secure a higher current income yield.
As the funding for a charitable lead trust. Rapidly appreciating assets such as stocks can be a beneficial way to fund a charitable lead trust. The assets transferred to the lead trust are frozen in value for transfer-tax purposes at the time of funding. At the end of the trust's term, all appreciation that takes place in the trust will pass tax-free to your heirs.
*State laws govern payable on death accounts. Please consult with your bank representative or investment advisor if you are considering this gift.
