Gifts of Securities
A gift of appreciated securities held for more than one year may provide significant benefits to you as a contributor, such as:
- Entitling you to a charitable income tax deduction for the fair market value of the gifted securities as of the date of gift.
- Eliminating capital gains tax that would ordinarily become due if you had sold the appreciated securities on the open market and donated the proceeds from the sale to charity.
- Claiming your charitable deduction against up to 30 percent of your adjusted gross income. Any unused deductions can be carried forward over the next five years.
- Providing a way to help you to achieve your long-term financial objective of reducing your income and estate taxes.
If you have securities that have declined in value over the years and are interested in donating them to charity, you may find it more advantageous to sell the securities first and contribute the proceeds to charity as opposed to donating the securities outright. This strategy should allow you to claim a deduction for both the loss from the sale of the securities as well as the charitable gift.
If you are considering donating stock that is subject to a cash merger or tender offer, it's important for you to note that you will be subject to tax on the capital gain even though the shares were transferred to us before the tender offer became effective.
You should always consult with your financial advisor before initiating a charitable gift arrangement.
Please note that the American Lung Association is not able to accept any securities from tobacco companies or related entities. Please consult your broker for further information on the nature of your securities if you are unsure or feel free to contact us.
Ways to Give Securities
There are two ways to make a donation of securities: by Physical Delivery or through an Electronic Transfer Authorization. Be sure to notify the contact listed below of your intention in advance of initiating your transfer.
If you have physical securities, you may deliver them in person, by registered mail, or by courier to your local Lung Association office. If they are registered in your name, you will need to provide an Irrevocable Stock/ Bond Power Form.
Electronic Transfer Authorization
Your broker can electronically transfer your securities to the Lung Association. Because this request must be made in writing, you or your broker must complete an Electronic Transfer Authorization form. Please download and fill out the Electronic Transfer Form and send it via email or fax to:
Cheryl J. Smoot, CFRE
Assistant Vice President of Individual Giving
Email: [email protected]
This form also contains the American Lung Association account number and information you will need to transfer your securities.