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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Dell-icious who wrote (632)	12/14/1998 8:25:00 PM
From: mod	Respond to of 1383

I just set this up for a small non-profit of which I am on the board. The non-profit needs a brokerage account, and the shares can either be transferred directly (best method) by sending a letter of instruction to the firm where they are held, or you can get certificates and they can deposit them. We have decided to immediately sell any shares that are gifted, as we are not in the business of taking market risk on donations (there is a separate endowment account which is invested). Many brokers have a deadline of 12/15 to receive transfer instructions, in order to ensure the stock will be transferred by year end. Most charities/non-profits of any size will have a brokerage account set up for donations, and can provide you with the transfer instructions to send your broker.

To: Dell-icious who wrote (632)	12/14/1998 9:11:00 PM
From: Spots	Respond to of 1383

Donating stocks From the other end (I donated stock this year), it's certainly simple to instruct your broker to make a direct transfer. It's exactly the same DTC transfer you would make to transmit stocks between you own brokers. You need the recipient charity broker's DTC number and the charity's account number. I did have a problem getting a verification from the charity, and then only on the day they sold it (and the amount they sold it for). I believe, though, you're entitled to deduct the fair market value on the day your broker transferred it, which may be somewhat different. Maybe someone can enlighten us on that score. I would be very interested. Charities seem to be cavalier about the effects of the donation on the donor's taxes, or at least the one I donated to was. Maybe the donation wasn't large enough to command attention <g>. In fact, I got a lot of pressure to sell the stock and donate the proceeds, which of course defeats a main part of the purpose from a tax point of view. Bite the helping hand, and it gets not reextended ... but that's another story. Spots