Gifts of Securities, Stocks & Bonds

Appreciated Securities

A gift of appreciated securities such as stocks, mutual funds (see below) and bonds can provide attractive benefits. An outright gift of long-term appreciated securities (securities held for more than one year) avoids capital gains taxes. In most cases, the donor may claim a charitable tax deduction equal to the full, fair market value of the securities. For gifts of appreciated securities, a gift is fully deductible up to 30 percent of the donor's adjusted gross income in the first year. As with gifts of cash, they may be carried forward for five additional years.

Mutual Fund Shares

Gifts can be made from mutual fund accounts to the Potomac Ridge Behavioral Health Foundation. The donor must write a letter of instruction stating the number of shares being given to Potomac Ridge, the timing of the gift, the name on the account, and a contact name at the Foundation's office. Like other securities, gifts of mutual fund shares are deductible up to 30 percent of the donor's adjusted gross income. The donor also gets to avoid capital gains taxes.

Gifts of Closely Held Stock

Closely held corporations are corporations whose stock is owned by family members and/or by business associates. The stock is private in that it is not publicly traded and, in most cases, there are restrictions on the transfer of the stock to third parties. With an outright gift of closely held stock, the donor typically transfers the stock to the Potomac Ridge Behavioral Health Foundation. To determine value, the donor has the stock appraised and obtains a charitable income tax deduction equal to its appraised value. A professional who is knowledgeable in establishing value of closely held stock must conduct the appraisal. The Potomac Ridge Behavioral Health Foundation then redeems the stock to the corporation of one of its trustees and receives a check for the redemption price.

For more information about gifts of securities, mutual fund shares, and closely held stock, please contact the Foundation at prbhfoundation@adventisthealthcare.com or phone 301-251-4677 or toll free at 1-800-204-8600 ext. 4677.