Advantages of Appreciated Stock
- Avoid capital gains tax. Any gain in the stock is taxable if you sell it yourself, but not if you donate it to MaineCF.
- Your charitable deduction for federal income tax purposes is based on the fair market value of the stock on the date the gift is made.
- Receive gift credit from MaineCF for the full fair market value of the stock.
How to Give a Gift of Stock
If your stock is held in a brokerage account, ask your broker to contact us about opening a temporary account so that the stock may be transferred to MaineCF to complete the donation. The procedure for donating stock through your broker is as follows:
- The broker deposits the stock in an account in the Maine Community Foundation's name.
- The broker calls MaineCF at (877) 700-6800 for instructions on disposition of the stock. (NOTE: you as the donor must not direct the broker to sell or hold the stock after the transfer has occurred. Stock sold by a donor for MaineCF is treated as a cash gift, and the donor is liable for any capital gains tax incurred.)
Detailed stock transfer instructions in PDF format can be found here.
If you hold the stock certificate, mail it to MaineCF using the following procedure:
- Mail the unendorsed certificate to Maine Community Foundation, Attention: Karen Hartt, 245 Main Street, Ellsworth, ME 04605. Send by CERTIFIED MAIL.
- In a separate envelope, mail a signed stock power form, with your signature guaranteed by a commercial bank or brokerage firm, by ordinary first-class mail, to the same address as the certificate. Stock power forms can be obtained from your bank or brokerage firm.
Valuation of the Gift
The value of a gift of publicly traded stock is determined by you and your broker and is based on the average of the high and low share prices on the date of the gift. The valuation date depends on the method of transfer.
If you mail the stock certificate and stock power form in separate envelopes, the later of the two postmarks on the envelopes determines the date of the gift.
If your broker transfers the stock to the Maine Community Foundation's account, the date of the gift is defined as the date on which the stock entered the MaineCF account.