Stock and Mutual Fund Donations

Your donation of stocks or other securities to Underground Railroad, Inc. may yield significant tax advantages to you and greater benefits to your community.
• Avoid capital gains tax on the sale of long-term appreciated securities.
• Receive a charitable deduction for the full fair market value of long-term appreciated securities.

 

ESTABLISHING THE GIFT’S VALUE

The gift value of the securities is the average of their high and low prices on the date of the transfer. For mutual fund shares, the net asset value (NAV), at the close of business on the date of the gift, is used to establish the value of the donation.

Pursuant to IRS regulations, the effective date of the gift for valuation and charitable deduction purposes is the date the securities are transferred into Underground Railroad’s brokerage account or delivered in certificate form to Underground Railroad. If the transfer needs to be made by a specific date, please allow sufficient time for DTC transfer to take place.

 

EASY STEPS FOR TRANSFERRING SECURITIES

The methods for transferring investments, while not complicated, are strict.  If you wish to donate securities held by a bank or brokerage firm, please follow the instructions directly below.  If you hold the securities in certificate form, please call our Advisor following the instructions at the bottom of the page.

 

SECURITIES HELD BY A BANK OR BROKERAGE FIRM

STEP 1: Authorize your financial consultant to transfer the stock as a contribution to Underground Railroad (see the sample letter). Be sure to include the following information:

• Stock name or symbol
• Number of shares you wish to donate
• Expected date of transfer
• Your account #
• Your work and home telephone numbers
• Your home address

Brokerage Account: Merrill Lynch, DTC# 8862 – Account # 696-02686

STEP 2: For acknowledgement purposes, Underground Railroad must receive the above information. It is important that you specifically authorize your broker to disclose to Underground Railroad your name and details pertaining to the stock transfer. This step is particularly critical since privacy laws prohibit brokers from disclosing the names of clients making wire transfers of stock unless the disclosure of such information has been specifically authorized.

Please send the information to Christi Birchmeier, Executive Director, via email at christib@undergroundrailroadinc.org;
fax at (989) 399-0010; or mail to 5647 State Street, Suite A, Saginaw, MI 48603.

 

SECURITIES HELD IN CERTIFICATE FORM

Contact our representative to make an appointment:
             Terri Carmichael – Merrill Lynch
             Vice President
             Wealth Management Advisor
             (989) 791-8426
             4805 Towne Centre, Ste. 200
             Saginaw, MI 48604
             Terri_Carmichael@ml.com