Because History Matters Endowment Campaign: Giving Stock

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Why Give Stock?
For many donors, giving appreciated stock to the FRHS may be preferable to giving cash. Federal tax-law offers special incentives for gifts of stock, particularly if the stock has appreciated in value.

• You avoid capital gains tax. Any gain is taxable if you sell the stock yourself, but not if you give it to FRHS.
• Charitable deduction is based on the fair market value of the stock for tax purposes on the date the gift is made.
• You receive credit from FRHS for the full market value of the stock and your cost is your original purchase price.

There are two methods of giving stock to FRHS:
If the stock is held in a Brokerage Account

1. Have your broker transfer the stock to an account in the name of the Fall River Historical Society. The account should include FRHS’s address, telephone number, and tax identification number. Your broker must contact the FRHS to complete the details necessary to set up the account. The stock is then transferred to the new account according to the donor’s instructions and sold by the broker on behalf of FRHS. Fall River Historical Society, 451 Rock St., Fall River, MA 02720 Phone: 508-679-1071.
2. As an alternative to creating a new separate account, stock donations can be sent directly to the FRHS’s endowment with Plimoth Investment Advisors (PIA)/BayCoast Bank who will make the process as simple as possible for you. To initiate the gift, call PIA toll free at 1-888-268-4002 and tell them you would like to make a stock gift to the FRHS Capital account. They will need your Investment Manager’s contact information, and particulars of the shares to be gifted, at which time they will reach out to your representative to initiate and complete the gift to the FRHS.

Note: Do not direct the broker to sell or hold the stock until after the transfer has occurred. Stock sold by a donor and later gifted to FRHS is treated as a cash gift, and the donor is liable for incurred capital gains tax. FRHS’s standard protocol is to liquidate the stock immediately unless otherwise directed.

If you hold stock certificates

1. Mail the unendorsed certificates to the attention of Betty Welch, Treasurer, Fall River Historical Society, 451 Rock St., Fall River, MA 02720.
2. Include a transmittal letter clearly stating your gift intentions. For example: “The enclosed certificates represent my contribution to the Endowment Campaign.”
3. In a separate envelope, mail a signed, blank stock power form, with your signature guaranteed by a commercial bank or brokerage firm, by ordinary first-class mail to the above address. Stock power forms may be obtained from a bank, a brokerage house, or directly from Fall River Historical Society. Please include a copy of the transmittal letter.

The Value of a Stock gift

The value of a publicly traded stock is always the average of the high and low share prices on the date of the gift. Price quotes are generally taken from the WSJ. The date for valuing the gift depends on method of transfer.

• If you mail the stock certificate and stock power forms separately as described, the date of the gift is determined by the later postmark on the two envelopes.
• The date of the gift is defined as the date on which the stock enters FRHS’s account.
• If you deliver the stock certificate to Fall River Historical Society, the date of the gift is the date of the delivery.
• If the stock is not traded on a public exchange, an appraisal may be required to determine its value.
• Giving to a non-profit organization such as the FRHS during your lifetime or after you are gone may help to reduce federal estate and gift taxes significantly, since contributions made to charities are exempt from the gift tax.

For more information: contact Michael Martins, Curator, or Gary Schuyler, Campaign Director, at 508-679-1071.