Giving Appreciated Securities
The benefits of donating appreciated securities (either stocks or mutual funds) are tremendous. You can avoid paying capital gain tax on the appreciation, and you can also claim a tax deduction for the full fair market value of the security at the time of gift. This is a great way to leverage your gift in support of the mission.
As long as you have held the security for longer than 12-months, giving through appreciated securities can be a great way to support the mission and optimize your tax deduction:
Here’s How it Works…
Joe bought stock 10 years ago for $2,000. The stock has appreciated over the years and is now worth $20,000. Joe wants to help the poor and homeless in his community and decides to donate the stock directly to the Rescue Mission Alliance. Joe got a $20,000 charitable income tax deduction even though he only paid $2,000 for the stock. He avoids paying capital gain tax on the $18,000 of appreciation. The tax avoided could be $3,600 ($18,000 x 20%). Since Joe transferred the stock directly to the rescue mission, versus selling the stock, he also avoided paying a sales commission to his broker.
There are several ways to transfer stock to the rescue mission. Please be sure to contact us once your transfer has been completed. This is very important, especially if the gift has been transferred electronically to our account or a certificate has been issued in the name of the Rescue Mission Alliance since your name will not be associated with your donation. We would also like to say “thank you” personally as well as provide you with an acknowledgment letter for your tax purposes.
Electronic Transfer
This is a convenient way to donate your securities. Simply instruct your broker to electronically transfer your securities out of your account into the Rescue Mission Alliance’s Wells Fargo account. Please provide your broker with the following information:
- Account number: 80388461
- DTC number: 0141
- Account name: Rescue Mission Alliance
- RMA’s tax identification number (FEIN): 23-7278002
- Wells Fargo Advisors
118 East Carrillo Street
Santa Barbara, CA 93101 - Ward Rafferty Jr, Vice President-Investments
805-564-2872 office direct
home.wellsfargoadvisors.com/ward.rafferty
Please be sure to notify us directly of the transfer so we can receipt your donation promptly by providing the following information:
- Your name, address, phone number, and email address
- The ministry you wish to designate your gift to
- The name of the stock and number of shares you are donating
You may contact Dave Chittenden by email (dchittenden@erescuemission.org) or by phone (805) 201-4347.
Certificate Transfer
Transferring your stock certificate can be as simple as endorsing the back of the certificate and sending it by certified mail to The Rescue Mission Alliance. (Notary public stamps are not an acceptable guarantor for stock certificates.) Be sure to endorse the certificate exactly as your name(s) appears on the front. Insert the Rescue Mission Alliance’s tax identification number 23-7278002 in the box on the back requesting a social security number or other identifying number of assignee. Send it by certified mail to: Rescue Mission Alliance, Attn: Dave Chittenden, 315 N. A St. Oxnard, CA 93030.
Employee Owned Stock in Non-Retirement Plans
If you purchased stock from your employer (e.g. non-retirement E.S.O.P.) you can instruct them to issue a certificate in the name of the Rescue Mission Alliance. You will need to provide them with our tax identification number (23-7278002) and our address (315 N. A St. Oxnard, CA 93030).
Mutual Fund Transfers
Contact the Rescue Mission Alliance at (805) 351-7110 to find out the simplest way to transfer your mutual fund. We will provide the transfer instructions specifically related to your mutual fund company.
Questions? Please contact Dave Chittenden by email (dchittenden@erescuemission.org) or by phone (805) 201-4347.