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 allows them to increase the size of their gift.
To make a gift of appreciated securities to the Santa Barbara Botanic Garden, please follow these instructions for transferring securities electronically to the Garden's account at The Northern Trust Company:
- Prior to initiating a stock gift to the Garden, please notify our Development Office of your intended donation by calling or sending e-mail to Nina Dunbar at 805-682-4726, ext. 151.
- Prior to actual transfer, please call (or have your broker call) our Trust Officer at The Northern Trust Company, 805-884-4334 with the following information:
- Donor's name*
- Donor's broker's name, firm, and direct phone number
- Name of securities, approximate number of shares, approximate value of securities, expected date of transfer, security cusip number, and
- Intended purpose of the gift (e.g. general purposes, endowment, etc.)
- Please have your broker transfer the appreciated securities to the Santa Barbara Botanic Garden Account as follows:
- DTC Book-Entry Eligible Securities
- Depository Trust Company
- The Northern Trust Company, Trust Department
- Participant #2669
- Account: SB BOTANIC GARDEN
- Account #: 23-51082
- The Garden will send an acknowledgment letter within two weeks 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 Barbara Botanic Garden assumes ownership of the stock.
* Please be sure to instruct your broker to include your name when transferring the securities, even if you want your gift listed anonymously. Each year we receive stock gifts that don't carry the donor's name. The "blind" stock thus sits unclaimed and delays your acknowledgement.
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.
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.