Gifts of Appreciated Stock

​Why Gifts of Appreciated Stock Make Sense

With many stock portfolios looking quite healthy after solid gains in the public equities markets, gifts of appreciated stock can be a fantastic way to give to OMF, especially when the gifted shares would otherwise be subject to sizeable capital gains taxation. Gifts of stock, which must come from non-qualified stock accounts (i.e. not your IRA), let you forgo capital gains altogether and double up on the benefits you’re receiving from Uncle Sam. This is because you get to forgo capital gains taxes AND write off the charitable contribution which, if you were to sell the stock yourself, pay the taxes, and donate the net proceeds, you wouldn’t be able to do. 
 
Says Laura Scharr-Bykowsky, CFP, MBA, of Ascend Financial Planning: “It’s true that a check is the easiest way, but if an investor wants to make a gift and help themself to a bigger tax break, there is a better option. If an investor has held an appreciated stock or mutual fund for more than one year, they can donate those securities to a charity and receive a tax deduction for the fair market value of the securities, and eliminate any capital gains assessments on the future sale of the securities. In some cases that could be as much as 23.8% in addition to a savings on State income tax.”
 
In general, the amount of your deduction is limited to 30% of your adjusted gross income, but you can carry forward amounts above that for up to five years. You are advised to talk to your accountant to fully understand the tax implications of any gift of stock or cash and to understand any potential implications of the re-installment of the "Pease" limitation, which reduces your total itemized deductions by 3% of the amount that your adjusted gross income exceeds $250,000 (for single filers) or $300,000 (for joint filers).

"...that could be as much as 23.8% in addition to a savings on State income tax.”

Gifts of Stock to OMF.pdf
click to download instructions
RBC Wealth Management Explanation.pdf
click to download

How To Give Stock

To gift stock to OMF, have your broker initiate a transfer of the shares you wish to donate to the following account:

OMF Stock Transfer Account:
Morgan Stanley LLC
For the benefit of Ocular Melanoma Foundation
DTC #0015
Account 670-016626
Morgan Stanley
701 Town Center Drive, Suite 902
Newport News, VA 23606
 
It is helpful to have your name (or the LLC or family office account out of which you’re transferring the stock) attached in the Memo line (or as a reference for the transfer).
 
For those of you with online brokerage accounts (e.g. TD Ameritrade or E*TRADE), simply click on the link below to access the applicable transfer form or speak directly with the online brokerage:

TD Ameritrade
E*TRADE
Scottrade
Upon receipt of the gift, OMF will notify you that the shares have been successfully received. The shares will be sold the day of receipt at market value (or, if received after closing of the public markets, upon the start of the next trading session) and settled funds transferred directly into OMF’s checking account as cash. If you’d like to transfer money directly into our accounts at Bank of America (or would prefer to work through Merrill Lynch), that can also be arranged.
 
If you require assistance with the process or have any additional questions, please email Grant Allen, OMF Chairman, at grant@ocularmelanoma.org or call Morgan Stanley directly.

Morgan Stanley Contact:            
Shannon M. Green
Morgan Stanley Wealth Management
Branch Toll Free Phone: 800-338-8948
Direct Phone: 757-597-9614
Fax: 757-299-2092
Email: Shannon.M.Green@morganstanley.com