Donating appreciated securities such as stocks, ETFs, or mutual funds is one of the easiest ways to give more to Webb School or other charities that you care about. If you have stocks that have appreciated in value, you may want to consider using those to fund your gifts to Webb. By transferring them directly to Webb School, you can avoid the capital gain tax that you would have paid if the securities were sold. You can then purchase new shares to reset your cost basis at the current higher price. Gifts of stock and securities can be used to fund gifts to the Webb Fund, capital campaigns, or gifts for the endowment.
John and Rebecca Smith are Webb parents with two kids at Webb School. They are thinking about making a donation to the Webb Fund in December as part of their end-of-year giving. Their stock portfolio has performed well over the past few years, especially their shares in X Corp. They are debating whether they should sell the stock and make their gift from the cash proceeds or donate the stock directly to Webb School. They purchased the stock in X Corp for $200 several years ago, and the stock is currently worth $1,000. If they sell the stock to make the donation, they will pay a tax on the gain of $800 at a rate of 20 percent. They will also have to pay a sales commission that could reduce the amount available for the donation. However, if they donate the stock directly to Webb School, they will receive the benefit of a $1,000 gift and have no capital gains tax due. The tax benefit is a two-for-one: N0 capital gains tax AND a charitable donation for the full value of the donated security!
INSTRUCTIONS FOR GIVING STOCK TO WEBB SCHOOL
If the stock is in a brokerage or bank trust account:
Instruct your stock broker/banker by telephone and follow up with a letter to have the stock electronically transferred to the Webb School account. Our brokers' contact information is as follows:
Ms. Terri Nations
PH (865) 583-7390
FAX (865) 583-7398
Account Number: 3JD-004228
DTC (Depository Trust Co.) #0443
Webb’s Federal Tax ID# 62-0550980