Gifts of Stock and Securities
Giving appreciated securities is a fast and easy way to make a gift to the Garden while deriving considerable tax benefits. It is almost always a better strategy to give appreciated securities directly to the Garden, rather than selling them and donating the proceeds of the sale. In fact, many donors find the tax benefits associated with giving appreciated securities to the Garden actually allow them to increase the size of their gift.
Case study: Making a gift of appreciated securities
John and Barbara M. hold 1,000 shares of a stock they purchased five years ago at $12 per share, for a total investment of $12,000. Today their shares are worth $50 per share, or $50,000. John and Barbara decide to gift these securities to the Garden.
With this gift of appreciated securities, John and Barbara have—
- made a gift of $50,000 to support the Garden;
- qualified to receive an immediate $50,000 federal charitable income tax deduction;
- avoided a $7,600 federal capital gains tax; and
- excluded $50,000 from their taxable estate.
In addition to helping the Garden, a planned gift of appreciated securities can create exciting opportunities for you. For example, it may create a lifelong income stream which exceeds what you would otherwise have received in dividends. Many donors use securities to establish a stand-alone planned gift, such as a charitable remainder trust.
Securities that have lost value are not usually considered for gift purposes. If you want to take your losses and invest the proceeds in a guaranteed success, however, you can sell the stock, take the capital loss deduction, and make a gift to the Garden.
Instructions for giving appreciated securities:
1. STEP ONE: Please notify our development office of your intended stock gift by calling 805-690-1697.
2. STEP TWO: Prior to actual transfer, please email (or have your broker email) Brian Kerstiens at email@example.com (805) 564-6336 or Linda Warden firstname.lastname@example.org, or call (805) 884-1435 with the following information:
a) your name;
b) your broker’s name, firm, and direct phone number;
c) name of securities, approximate number of shares, approximate value of securities, expected date of transfer, security cusip number; and
d) intended purpose of the gift (e.g. general purposes, endowment, etc.)
Please instruct your broker to include your name when transferring the securities. Each year we receive stock gifts that don’t carry the donor’s name. The “blind” stock thus sits unclaimed and delays your acknowledgement.
3. STEP THREE: Please have your broker transfer the appreciated securities to the Santa Barbara Botanic Garden Account as follows:
BROKER DELIVERY INSTRUCTIONS:
M&I Marshall & Ilsley Bank
F/B/O Pacific Capital Bank N.A., #74-2064-01-7
Contact Phone Number #414-815-3729
F/C: JF –72-0033-01-8 Santa Barbara Botanic Garden
We will send an acknowledgment letter within one week of the receipt of stock. For tax purposes, your gift will be valued at the average of the high and low prices on the date the Santa BarbaraBotanic Garden assumes ownership of the stock.
The Santa Barbara Botanic Garden fosters the conservation of California's native plants through
our gardens, research and education, and serves as a role model of sustainable practices.