Stocks and Bonds
Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to Maine Community Foundation.
Benefits of gifts of stocks and bonds
- Avoid paying capital gains tax on the sale of appreciated stock
- Receive a charitable income tax deduction
- Further MaineCF's mission or the mission of your favorite nonprofit
How to make a gift of stocks and bonds
- If your stock, bonds or mutual funds are held in a brokerage account, ask your broker to contact Maine Community Foundation at 877-700-6800 prior to transferring the stock. Please call MaineCF to receive detailed stock transfer instructions. (NOTE: As the donor, you must not direct the broker to sell or hold the stock after the transfer has occurred. Stock sold by a donor is treated as a cash gift, and the donor is liable for any capital gains tax incurred.)
- If you hold the stock certificate, contact Maine Community Foundation for current procedures.
- Securities given to Maine Community Foundation incur brokerage fees as well as a small transaction fee upon the sale of the securities. These brokerage and transaction fees average between 1-3% of the total charitable gift. The charitable gift deduction calculation for the donor is not reduced by these fees; it does affect the amount posted to the charitable fund.
Gift Valuation Date
The gift valuation date is the date the donor relinquishes the asset to Maine Community Foundation. The date this transfer occurs depends on how the donor conveys the stock to MaineCF. It is the responsibility of the donor to document the date of the gift for tax purposes.
Electronic Transfer through Depository Trust Company (DTC)
The gift date for DTC electronic transfers is the date the securities/bonds
are deposited to the community foundation's account at UBS Financial
Services. It is not the date a broker puts the stock into a
"temporary" gift account or "holding" account.
Please note: Giving instructions to your broker does not constitute
completion of a gift. If you write a letter of instruction to your
broker on December 27, but the securities are not transferred into
MaineCF's UBS account until January 2, the gift valuation date is
January 2.
By U.S. Mail
Stock certificates that are mailed are considered to be a legal gift as of the date of postmark for the certificate or signature guaranteed stock power, whichever is later.
By UPS, FedEx, etc.
Stock certificates sent via a third party provider are considered to be a legal gift as of the date of receipt at Maine Community Foundation.
Hand Delivered
The date that both the certificate and the Irrevocable Stock/Bond Power are received by Maine Community Foundation or UBS Financial Services as agent for the foundation is the date of the gift. A signed stock certificate delivered in person will be valued on the date on which the community foundation takes possession.
Stock Registered to Maine Community Foundation
Stock certificates registered in the name of Maine Community Foundation are considered to be a legal gift as of the date of registration in the foundation's name.
Mutual Fund Units
The gift date for the mutual funds is the date they are deposited to MaineCF's account at UBS Financial Services.
End of Calendar or Fiscal Year Gift Timing
If you intend to make a gift of securities, mutual funds, or bonds, or make a wire transfer prior to the end of the calendar year, please allow ample processing time, depending on the type of transfer. Please contact us as soon as possible so we may assist you with this process.
Methods for Gift Valuation
Gift valuation assigned by Maine Community Foundation is for gift recognition purposes only. It is the responsibility of the donor and his/her tax advisors to substantiate how the value of the gift was determined for tax purposes.
- Securities: Calculated by averaging the high and low quoted selling prices for the stock as of the gift valuation date.
- Bonds: Calculated by averaging the bid and ask prices for the bond as of the gift valuation date.
- Mutual fund units: Calculated using the NAV (net asset value, also called the closing value) for the fund as of the gift valuation date.
Contact us
If you have any questions about gifts of stocks and bonds, please contact us. We would be happy to assist you and answer any questions that you have.