Many donors own appreciated assets but aren’t aware of how powerful they can be as charitable gifts.  Donating stock (or other securities) is a simple way to maximize both your impact and potential tax benefits. We sat down with Petrina Williams, Director of Planned Giving, to learn more.

SBA: Can you tell us what appreciated stock is?

Petrina: Appreciated stock (or other securities) refers to investments that are worth more today than when they were originally purchased.  This can include publicly traded stocks, mutual funds, or bonds that have increased in value over time.

SBA: What are the benefits of donating appreciated stock instead of cash?

Petrina: Donating appreciated stock is one of the most tax-efficient ways to support causes you care about.  When you donate stock that you’ve held for more than one year, you may be able to avoid paying capital gains tax on the appreciation; claim a charitable deduction for the full fair market value of the stock (Gifts to the 501(c)(4) are not deductible.); or potentially give more than you could by selling the stock and donating cash. Because capital gains taxes are avoided, more of your gift goes directly toward supporting Susan B. Anthony Pro-Life America’s (SBA) mission.

SBA: If one of our members is ready to donate stock to Susan B. Anthony Pro-Life America, should they sell the stock first and then donate cash?

Petrina: In most cases, no.  Donating stock directly to a charity is often more tax-smart than selling it first. If you sell appreciated stock and then donate the cash, you’ll generally owe capital gains tax on the increase in value.  By transferring the stock directly to a qualified charity, you can avoid that tax and may still be eligible to deduct the full fair market value of the asset, in accordance with IRS guidelines.

SBA: What information do our members need to donate stock to SBA Pro-Life America 501(c)(4), SBA Pro-Life America Education Fund 501(c)(3), Charlotte Lozier Institute 501(c)(3), or Her PLAN 501(c)(3)?

Petrina: I’ve listed below our account information for the 501(c)(4) (not tax deductible) and the 501(c)(3) (tax deductible).

For a donation to Susan B. Anthony Pro-Life America 501(c)(4), provide your broker with the following account information:
DTC# 0221
UBS Financial, Inc.
Account #: JW46603
Account Name: Susan B. Anthony List Inc. (our legal name)

For a donation to Susan B. Anthony Pro-Life America Education Fund 501(c)(3), provide your broker with the following account information:
DTC #0221
UBS Financial, Inc.
Account #: JW46602
Account Name: Susan B. Anthony List Education Fund (our legal name)

If you are supporting one of our 501(c)(3) organizations, your stock gift will be transferred to the 501(c)(3) account listed above. Please be sure to designate your intended program in the stock transfer (SBA Education Fund, Charlotte Lozier Institute, or Her PLAN).

Lastly, when making a gift of stock, please include your name with the transfer instructions or notify us when you have instructed your broker. This helps us properly identify and acknowledge your generous gift, as brokerage transfers often arrive without donor information.

SBA: Once they’ve initiated the transfer of stock, what happens?

Petrina: Publicly traded securities are accepted and valued on the date the securities are irrevocably transferred to SBA Pro-Life America or one of its affiliated organizations.  In most cases, donated securities are sold promptly.  Proceeds from the gift are then used to support the donor’s designated program, consistent with the donor’s intent. There is generally no service fee for donors giving appreciated securities.

SBA: What should our members do if they’re interested in leaving a gift of appreciated stock to Susan B. Anthony Pro-Life America as a legacy gift?

Petrina: We would be honored to welcome you into the Legacy of Life Society.  You may leave stock to SBA Pro-Life America, SBA Pro-Life America Education Fund, Charlotte Lozier Institute, or Her PLAN through your will or estate plan.  If you choose this option, it’s important to clearly specify which shares are allocated to each beneficiary and to update your will as your portfolio changes.

An easier option is to name one or more of these organizations as a Transfer on Death (TOD) beneficiary on your investment account. A TOD designation allows assets to pass directly to the named beneficiary without probate, simplifying the transfer process.  To add or update a TOD beneficiary, contact your brokerage firm, or consult your estate planning attorney to update your will or estate plan.

Account information for all our entities is listed above.

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If you have any additional questions, or are interested in donating stock, you can learn more here, or contact our Director of Planned Giving, Petrina Williams at [email protected] or (202) 329-8376.

The information presented here is not intended as legal or tax advice.  Please consult with your own financial advisor or estate planning attorney to determine what kind of giving is right for your unique situation.