FAQ for Stock Transfer Process
1. How do I determine the value of my transferred stock for tax
Your tax deduction is determined by taking the average of the high and low price per share of the stock (your broker can provide you with this information) on the day it is transferred out of your account multiplied by the number of shares you donated. Your professional advisor should be able to provide you this information. The Federation will provide a letter noting the number of shares of each stock we received to serve as record for tax purposes of the donation. You should consult you financial advisor advice on your specific situation.
2. 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 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.
3. Which broker and Federation account should I transfer my
Please see a list of brokers and accounts that the Federation uses.
4. Can Federation hold onto stock I transfer or must it be sold
The Federation does not hold onto stock donated for speculative purposes. All donated stock is sold immediately upon receipt.
5. How will I know the stock has been
You can confirm with your professional advisor that the stock was transferred to the Federation. A letter confirming the receipt of your stock will be sent to you by the Federation.
6. How will I know the stock has been sold?
All stock received into our accounts is 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.
7. Who do I contact if I have questions regarding a stock
Please email firstname.lastname@example.org or call 404-870-1623.
8. What information does the Federation need from me about the
stock transfer, and how do I communicate that to the Federation?
The Federation has multiple ways for you to communicate important information about your stock transfer. The Federation needs to know:
You can relay this information via email to email@example.com, or to our stock hotline at 404-870-1623
9. Why should I use stock to fund my donor advised fund,
supporting family foundation, or pay a campaign pledge as opposed to a
Donating appreciated stock may be more tax advantageous for you as you avoid any capital gains tax you would normally pay upon the sale of a stock. Please consult your professional advisor for information on your specific situation.
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 day 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.