HOW AND WHY TO DONATE STOCK

FAQ for Stock Transfer Process

1. Why should I use stock to make a donation into my donor advised fund, supporting family foundation, or pay a campaign pledge....as opposed to writing a check?

Donating appreciated stock may be more tax advantageous for you.  You can avoid any capital gains tax you would normally pay upon the sale of a stock.  Please consult your financial advisor for information on your specific situation. 

2. What information does the Federation need from me about the stock transfer, and how do I let the Federation know?

The Federation has multiple ways for you to communicate important information about your stock transfer.  In order for your account to be credited properly, the Federation needs to know:

• The name of the Donor
• The number of shares of each stock being donated
• The date the stock is being transferred
• Which stock brokerage house the stock is being transferred FROM...and the account number
• How the donor wants Federation to credit the stock donation....to a donor advised fund, supporting family foundation or to pay a campaign gift. 

You can relay this information through our online form, via e-mail to stocktransfer@jfga.org or to our stock hotline at 404-870-1611

3.  How do I determine the value of my transferred stock for tax deduction purposes?

Your tax deduction is determined by taking the average of the high and low price per share of the stock on the day it is transferred out of your account.  Your broker can provide you with this information.  The Federation will provide a letter noting the number of shares of each stock we received and the date of transfer to serve as a record for tax purposes of the donation. 

4. How long does it take for my account to show the deposit of my transferred stock for my donor advised fund, campaign pledge credit, or supporting family foundation?

Stock received is sold immediately with an open sell order we have with all of our approved brokers. Once sold, a check is issued to the Federation and then deposited into your account or as payment against a pledge you have made. The entire process can take up to 21 business days.  The transfer of shares from a mutual fund can take more time than shares of typical stock.  Please allow enough time for a smooth transaction. 

5. Which broker and Federation account should I transfer my stock to?
Please see a list of the approved brokers and accounts the Federation uses. These brokers have agreed to Federation's standard operating procedures thereby ensuring each donor receives accurate and timely credit into their account. 

6. Can Federation hold onto stock I transfer or must it be sold immediately?

It is a policy that Federation does not hold onto stock donated for speculative purposes. All donated stock is sold immediately upon receipt.  Please let the Federation know when you are transferring stock so we can track your donation. 

7. How will I know the stock has been transferred?

You can confirm with your professional advisor that the stock was transferred to the Federation account. A letter confirming the receipt of your stock will be sent to you by the Federation before January 31, 2009.

8. How will I know the stock has been sold?

All stock received into our accounts is to be sold immediately upon receipt. If stock is transferred at the close of business or after market trading, it will be sold at the soonest moment thereafter.  Informing the Federation of your intent to transfer stock will insure a smooth, timely and accurate transaction. 

9. Who do I contact if I have questions regarding a stock transfer?

Please email stocktransfer@jfga.org or call 404 873-1661.. 

10. If I make a stock transfer before December 31, but it does not post in my account until after January 1, do I get to deduct the stock donation for the prior tax year?

Your tax deduction is determined by the date the stock is transferred to a Federation account. If you transfer stock on December 31, but the Federation does not sell it or post it to your account until after January 1, you still receive the tax deduction for the year ending December 31.

Because December is a very busy month for stock transfers please transfer as early in the month as possible.  Following these helpful hints will allow for your donation to be credited in a timely fashion.  Your donation is very important to us, we assure that your account will be handled with the utmost of professionalism and donor services standards.