You can realize enhanced tax savings by making your gift to United Way with appreciated securities. Stocks, bonds and mutual funds can also be donated to charity and provide tax savings. When donating securities, it is important to keep in mind whether they have increased or decreased in value over time.
If the value of the securities has increased, consider donating them directly to the organization rather than selling them and donating the cash. Securities that you have owned for more than a year can be tax deductible at their full fair market value, not at the original cost. In addition, this also allows you to bypass capital gains taxes that you would owe if you sold the securities. Donations of securities are deductible in amounts up to 30% of AGI*.
However, if the value of your securities has decreased over time, you may want to sell them and then donate the all or part of the proceeds. You will receive the tax deduction for the amount of the charitable gift as well as creating a loss that you may also be able to claim.
If your securities are held at a brokerage firm:
Contact your broker in writing and request a transfer of securities to the United Way account. United Way has accounts at most of the brokerage houses in our area.
Notify Doug Rossetti at United Way of Madison County of this transfer by calling (256) 518-8208 or by e-mail. Notify your company's campaign director so your gift can be included in your company's campaign results.
If you hold the securities:
Assign your stock certificate to United Way of Madison County and be sure your signature is guaranteed. Stock certificate should be hand-delivered or sent by certified mail to:
United Way of Madison County
701 Andrew Jackson Way
Huntsville, AL 35801
Send a letter stating that this is a gift to United Way, separate from the certificate. Notify your company's campaign coordinator so your gift can be included in your company's campaign results.