Giving: Gifts of Stock

Advantages of Donating Appreciated Securities

  • Avoid capital gains tax. Any gain in the stock is taxable if you sell it yourself, but not if you donate it to MaineCF as part of your charitable giving.
  • Your charitable deduction for federal income tax purposes is based on the fair market value of the stock on the date the gift is made (see gift valuation date below).
  • Receive gift credit from MaineCF for the full fair market value of the stock.

How to Donate Securities

  • If your stock, bonds or mutual funds are held in a brokerage account, ask your broker to contact the Maine Community Foundation at 877-700-6800 prior to transferring the stock. Detailed stock transfer instructions in PDF format can be found here. (NOTE: As the donor, you must not direct the broker to sell or hold the stock after the transfer has occurred. Stock sold by a donor is treated as a cash gift, and the donor is liable for any capital gains tax incurred.)
  • If you hold the stock certificate, contact Maine Community Foundation for current procedures.
  • Securities given to the Maine Community Foundation incur brokerage fees as well as a small transaction fee upon the sale of the securities. These brokerage and transaction fees average between 1-3% of the total charitable gift. The charitable gift deduction calculation for the donor is not reduced by these fees; it does affect the amount posted to the charitable fund. 

Gift Valuation Date

The gift valuation date is the date the donor relinquishes the asset to the Maine Community Foundation. The date this transfer occurs depends on how the donor conveys the stock to MaineCF. It is the responsibility of the donor to document the date of the gift for tax purposes.

Electronic Transfer through Depository Trust Company (DTC)

The gift date for DTC electronic transfers is the date the securities/bonds are deposited to the community foundation’s account at UBS Financial Services. It is not  the date a broker puts the stock into a “temporary” gift account or “holding” account.

Please note: Giving instructions to your broker does not constitute completion of a gift. If you write a letter of instruction to your broker on December 27, but the securities are not transferred into MaineCF’s UBS account until January 2, the gift valuation date is January 2.

By U.S. Mail

Stock certificates that are mailed are considered to be a legal gift as of the date of postmark for the certificate or signature guaranteed stock power, whichever is later.

By UPS, FedEx, etc.

Stock certificates sent via a third party provider are considered to be a legal gift as of the date of receipt at Maine Community Foundation.

Hand Delivered

The date that both the certificate and the Irrevocable Stock/Bond Power are received by Maine Community Foundation or UBS Financial Services as agent for the foundation is the date of the gift. A signed stock certificate delivered in person will be valued on the date on which the community foundation takes possession.

Stock Registered to Maine Community Foundation

Stock certificates registered in the name of Maine Community Foundation are considered to be a legal gift as of the date of registration in the foundation’s name.

Mutual Fund Units

The gift date for the mutual funds is the date they are deposited to MaineCF’s account at UBS Financial Services.

End of Calendar or Fiscal Year Gift Timing

If you intend to make a gift of securities, mutual funds, or bonds, or make a wire transfer prior to the end of the calendar year, please allow ample processing time, depending on the type of transfer. Please contact us as soon as possible so we may assist you with this process.

Methods for Gift Valuation

Gift valuation assigned by Maine Community Foundation is for gift recognition purposes only. It is the responsibility of the donor and his/her tax advisors to substantiate how the value of the gift was determined for tax purposes.

  • Securities: Calculated by averaging the high and low quoted selling prices for the stock as of the gift valuation date.
  • Bonds: Calculated by averaging the bid and ask prices for the bond as of the gift valuation date.
  • Mutual fund units: Calculated using the NAV (net asset value, also called the closing value) for the fund as of the gift valuation date.