This time of year, everyone is thinking about wisely donating appreciated stock to their Giving Fund. If you have held your stocks for more than a year, this gift type can help you avoid a capital gains tax and realize the full market value deduction for the shares.
By Bob Scarpetti, NCF
Publicly traded stock on the NYSE or NASDAQ is the most common stock gift type, and NCF received more than $320 million in these stocks last year. But what about gifting international securities traded on a foreign exchange? The answer is … maybe. Many givers have diversified their assets and investments beyond our border and into the worldwide marketplace, so it makes sense for us to examine this option. Some international securities are also traded on the U.S. stock exchanges and Over-The-Counter (OTC).
If you’re unsure about what information is needed to evaluate an international stock, the publicly traded securities questionnaire below can help you answer the right questions for your gift, which might help you move the opportunity from a “maybe” to a “yes,” and in less time!
NCF recently received a large $2 million portfolio, which included international stocks. This gift will likely go toward supporting this giver’s favorite causes: sending missionaries around the world and empowering the local church to meet the needs of the most vulnerable around the globe. Giving appreciated securities is a great way for a giver to maximize charitable impact. Balancing their portfolio annually and giving foreign stock are a part of this giver’s strategy to implement programs that transform challenged regions into thriving communities.
You may be able to make a contribution to your Giving Fund in the same way. Determine if your stocks will make an acceptable gift.
Questions to consider
Here are five questions you can answer before meeting with your relationship manager or financial advisor to speed up the process of determining whether your stocks can be gifted or not:
- Have you held the shares for more than a year?
- Are the shares appreciated?
- Where are the shares currently being held?
- Are there any restrictions on the shares? (What is required to remove the restriction prior to making the gift?)
- What is the description of the gift (name, value, ticker symbol)?