Most people think of writing a check when they want to make a charitable gift. However, gifts may be made with many types of property. You can receive significant tax advantages by donating securities rather than cash.

Many donors have found that they achieve substantial savings by giving appreciated securities (stocks or bonds that have grown in value since they were originally purchased). You may deduct the full market value of appreciated securities, and avoid any obligation to pay capital gains taxes.

An Example of How Donating Stock Can Benefit You:

As part of her investment portfolio, Maria owns oil company stock bought in her name for $1,000 by her grandfather. The stock is now worth $5,000. As an environmentalist, Maria is not comfortable holding oil company stock, but is reluctant to pay capital gains taxes on the profits, should she sell the stock. At the same time, Maria is planning a gift to MRG Foundation of an amount equal to the value of the stock.

Maria has three options for giving:

1. Sell the stock and donate the cash proceeds
2. Just give a cash donation
3. Give the stock itself

Option three, giving the stock itself as the gift, results in the lowest cost of giving because Maria receives a deduction for the full current value of the stock while also avoiding tax on the capital gain. In effect, she saves taxes twice by giving the appreciated stock to MRG. And she gets the added benefit of knowing that she's turned oil company profits into something that helps rather than hurts the environment. As a charitable foundation, MRG Foundation can sell the shares and not pay taxes on the gain.

Giving Securities to MRG Foundation is Easy...

Securities must be received by MRG Foundation in the calendar year for which you intend to take the tax deduction (in other words, by December 31st). It is best to allow six weeks for the transfer.

• Consult with your tax and investment advisors about the amount and types of securities you wish to give.
• Email sheryl [at] mrgfoundation [dot] org (Sheryl Sackman) or call MRG Foundation to find out how you can make a donation of stock to MRG Foundation.  
• If you are gifting mutual fund shares, the mutual fund will usually be able to set up a courtesy account for MRG Foundation. Ask the mutual fund or your investment advisor to send the new account forms to MRG Foundation. Then prepare a letter of instruction to the mutual fund, asking them to transfer the designated number of shares to the new MRG Foundation account, at no sales fee.
• If you hold your own stock certificates, you can safely transfer those certificates to MRG Foundation's investment account at Charles Schwab. 
• If you have an investment account of your own at Charles Schwab, draft a letter of instruction to Schwab, listing your account number, the number and type of securities you wish to transfer, and the instructions to transfer to the MRG Foundation's account.
• If you have an investment account at another brokerage, write a letter of instruction to your broker with your directions to transfer the securities to MRG Foundation's account at Schwab.

Have questions and want to make a stock donation to MRG Foundation? Contact Sheryl Sackman via email or call her at (503) 289-1517.

Interested in socially responsible investing? Visit www.socialinvest.org

MRG Foundation is a 501(c)(3) tax-exempt organization. Our federal tax identification number is 93-0691187.