Stock and Securities

Donating stocks is an easy way to give. If the stock has increased in value from the time of purchase, the owner can avoid paying the capital gains tax by donating the security to another party. When the security is donated to a charitable organization, the total amount will still be eligible for a tax deduction. Since taxation is avoided on the stock donation, you will be able to make a larger donation.

Benefits to donors

  • Satisfaction of seeing your gift put to good use today.
  • Receipt of a charitable tax receipt.
  • No capital gains tax paid.

How to Give Stock & Securities

You have the option of giving now or as part of your estate and will planning. A donor can also choose to donate a part of the stock and retain the remainder for personal use. Currently, there are two methods of transferring the ownership of a stock. The best choice of method depends on how it is currently being held.

If the stock or security is being held in certificate form, then transferring the physical stock will be required. The owner must:

  • Endorse the stock by signing it in presence of a guarantor, which can be your bank or broker. There may also be a form on the back of the certificate, relating to the transference of ownership. After the certificate is filled out and signed, it will be rendered non-negotiable and become transferable; and,
  • Deliver the endorsed certificates via hand delivery, registered mail or courier. The certificates and the share transfer agreement form must be mailed separately.

You will receive a charitable donation receipt for the fair market value.

If the stock or security is being held electronically in a brokerage account, then an electronic transfer will be required. To gift this stock:

  • Simply fill out our Charitable Donation of Securities Transfer form, which already has the brokerage account information of the OCH Foundation; and,
  • Instruct your broker to make the electronic transfer by including the transfer form in a letter of authorization.

You will receive a charitable donation receipt for the fair market value.

Please note: The fair market value is determined on the date the certificates are received by the OCH Foundation and a charitable donation receipt is issued. Ask your broker to waive brokerage fees in the name of charity. The proper legal name for making a gift to us is OCH Foundation for Healthy Communities. Please contact us to learn more.