Donate Capital Assets: Stocks, Bonds, or Mutual Funds

 

U.S. Residents:

When you make a gift of appreciated securities (stocks, bonds, or mutual funds), you may be able to claim the fair market value of the donated securities on the date of the donation as a charitable deduction for tax purposes and may also be able to eliminate taxes on accumulated capital gains. Here’s how it works:

  1. You transfer appreciated securities to the AAW. 
  2. The AAW sells your securities and uses the proceeds for programs and services that promote woodturning education or an initiative of your choice.
  3. You receive gift credit and an income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
  4. You pay no capital gains tax on the securities you donate.

Under the present U.S tax law, for a donation of the actual shares of stocks, bonds or mutual funds to the AAW a 501(c)(3) charitable organization, the built up capital gains are forever forgiven so that the donor never has to pay capital gains taxes on the donated securities. The donor may claim the fair market value of the stocks, bonds, or mutual fund shares that are donated as a tax deduction, as of the date of the donation, and not from the cost basis (the price the donor paid for the shares).*

It is important that you instruct your broker (or other investment adviser) to transfer the actual securities in kind (do not sell and then transfer proceeds).

AAW Donors & Supporters

 

AAW Brokerage Account

The AAW has a brokerage account at a venerable financial institution that can accept donated securities from other brokerage houses. All securities that are eligible to be transferred through the Depository Trust Company (DTC) can be transferred. Your broker can determine which of your securities are eligible. To transfer securities to the AAW account, talk to your broker.

  • For more information, please contact the AAW office by phone Monday through Friday, 8:30 a.m. to 4:30 p.m. (CST) at 877-595-9094 (toll free U.S.) or 651-484-9094 or email us at memberservices@woodturner.org.
 

 

*Tax Advice

 The AAW does not provide tax advice and recommends that you consult with your own tax adviser to evaluate the specific tax benefits or consequences resulting from your gift to the AAW based on your personal financial situation.

 

Contact Us

We invite you to contact us so that we can assist you or your adviser in the process of making a gift to the AAW. Call Phil McDonald, Executive Director, at 651-484-9094, 877-595-9094 toll free, or phil@woodturner.org.

If your would like your gift to remain anonymous, please contact us at memberservices@woodturner.org.