Charitable Gifts of Stock

The Lori Fund is pleased to announce that we can now accept gifts of stocks and other marketable securities

 

There are many different ways to support The Lori Fund through philanthropic giving, many of which are designed to help maximize your level of contribution. No matter the method you choose, or the size of your donation, each gift helps The Lori Fund provide much needed resources for the families of fallen Special Operations Warrior Foundation along with other military groups who sacrificed for our country.

A gift in the form of stocks or other securities is great for The Lori Fund, and can be significantly more beneficial to the donor when it comes time to file your annual Income Tax returns.

Some basic facts surrounding such a gift are shown below.  As always, we recommend that you consult your tax advisor in order to determine the impact that such a gift would have on you.

 

A way to support charity and save taxes

Many people who own stock or shares in mutual funds see the value of their investments increase over the years. But now they face a problem – how to turn their investments into cash without losing a significant portion of their gains to taxes. One solution is to donate all or a portion of their investment to charity. The Lori Fund can help turn your investment gains into giving opportunities.

How it works

The Lori Fund can accept your gift of stock or mutual fund shares.  Upon receipt, The Lori Fund converts your gift into cash.

Assets contributed become the property of The Lori Fund.  In most cases, gifts of securities held for at least 1 year by the donor will be credited at their fair market value, and the donor will receive a tax deduction accordingly WITHOUT PAYING ANY TAXES ON THE GAIN.

How to make a gift

You may make a gift of stock or mutual fund shares by mail, hand delivery, or through a broker.  Securities can be transferred directly from your brokerage account to the account of The Lori Fund.  This is the most common way to initiate a gift of this type.

Direct Transfer of Physical Certificates

If you prefer, securities can be transferred by mail or hand delivery.  In that case, you should date and sign one Stock Power for each stock certificate and one Disclaimer Form for each stock issue. These forms can be provided to you upon request.  A Disclaimer Form may also be a letter signed by you. Your signatures must be guaranteed by a commercial bank officer or stock broker. You should place the stock certificate (not endorsed) in one envelope and the Stock Power and Disclaimer Form (with signature guarantees) in another envelope and mail them to The Lori Fund, 85 Ocean Crest Way, Unit 632, Palm Coast, FL 32137. The date of the gift is determined by the postmarks. You may also hand deliver the stock certificates to a Lori Fund representative. The date of the gift is the date the Lori Fund representative takes possession of the stock certificate and a properly signed Stock Power and Disclosure Form.

Through a broker

The stocks may also be delivered to a broker, but the delivery date will be when your broker transfers the stock to The Lori Fund. If your stock is registered in street name (that is, the name that appears on your certificate is that of your broker), the date of delivery is when you can no longer legally revoke transfer. There can be delays in the date of transfer.

Transfer of mutual fund shares

You write a letter of instruction to the mutual fund company asking them to transfer the shares to a new account as a charitable gift for The Lori Fund. A Lori Fund representative can help you draft the letter. The letter must have your guaranteed signature when it is mailed to the mutual fund company. The Lori Fund may need to set up an account with the mutual fund company prior to receiving the gift. The gift date is the date the mutual fund company transfers shares to The Lori Fund account.

Advantages for donors

Freedom – The Lori Fund takes the responsibility to sell your securities and to manage gift proceeds.

Avoid capital gains tax – When appreciated securities are donated, the donor does not have to pay tax on capital gains. This leaves more money to go to charity.

Immediate tax deduction – In the year the gift is made, you get a federal income tax deduction for the fair market value of the property held long term, up to 30 percent of your adjusted gross income. Any deduction you qualify for above these limits may be carried forward for up to five successive years.

Tax contribution receipt – The Lori Fund will issue contribution receipts to donors in the amount of the market value of the securities on the date of receipt for tax purposes.

Privacy – If the donor wishes to give anonymously, The Lori Fund can keep the donor’s identification confidential.

A donated stock case study

“Bob and Jody Smith” have owned shares of stock for 15 years. They would like to sell the shares, but the value of the stock has increased greatly since they made their initial investment. Their capital gains would be subject to income tax. The Smiths would like to make a special contribution to The Lori Fund.

Bob and Jody decide to donate their stock to The Lori Fund. The Lori Fund then sells the shares and places the cash proceeds into the operating account for further charitable use.  The Smiths get an immediate charitable income tax deduction and avoid tax on any capital gain.

 

For further information, please contact:

Frank Petruno – (603) 759-6555

Doug Constable – (336) 407-0376