Donating appreciated securities at Vanguard and bogleheads wiki

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DoubleClick
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Joined: Mon Oct 18, 2010 1:12 am

Donating appreciated securities at Vanguard and bogleheads wiki

Post by DoubleClick » Thu Dec 07, 2017 1:15 am

https://www.bogleheads.org/wiki/Donatin ... securities

The article above says " If the charity does not wish to hold the fund, one of the options allows the charity to ask Vanguard to sell the fund and give it the proceeds in cash."

This is what I am trying to do. However, the form that I see on Vanguard's website does not have this option. The form name I'm looking at is "Letter of Instruction for Gifts of Securities".

Is the bogleheads wiki page out of date (perhaps after mutual funds and securities were merged into brokerage accounts?), or am I not looking at the right form? Is this even possible now? That is, can one donate appreciated securities but have Vanguard sell them and transfer cash to the charity?

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FiveK
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Re: Donating appreciated securities at Vanguard and bogleheads wiki

Post by FiveK » Thu Dec 07, 2017 4:42 am

DoubleClick wrote:
Thu Dec 07, 2017 1:15 am
Is the bogleheads wiki page out of date...?
Possibly. Words to that effect were in the original wiki article, now almost 10 years old. I see the same lack of that option on the form that you mention - perhaps someone will have more direct knowledge.

See also Complication donating Vanguard mutual fund to charity - Bogleheads.org.

DoubleClick
Posts: 369
Joined: Mon Oct 18, 2010 1:12 am

Re: Donating appreciated securities at Vanguard and bogleheads wiki

Post by DoubleClick » Thu Dec 07, 2017 5:23 am

Hmm, I might have answered a part of my own question. I was looking here and didn't find it: Change of ownership (life events) -> Give shares to an individual/organization


However, I found a different, longer form here:
Change owners -> Start -> Give shares or securities to an individual or organization -> Get paperwork ->
Giving Fund Shares to Organizations
Give a gift of Vanguard® mutual fund shares to a non-profit organization.

That form has this option:
Exchange or sell the shares optional
Check one of the following options only if your organization doesn’t want the gifted assets to remain
invested in the same funds as they were when transferred.
X Sell the shares and mail a check to the address the organization has on file at Vanguard


FiveK: thanks for the pointer to the other thread. Reading that makes me wonder if the option above is the one that requires the recipient to have a Vanguard account. I hope not. I'll post when I talk to Vanguard and find out.

Pigeye Brewster
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Re: Donating appreciated securities at Vanguard and bogleheads wiki

Post by Pigeye Brewster » Thu Dec 07, 2017 9:36 am

DoubleClick wrote:
Thu Dec 07, 2017 5:23 am
Hmm, I might have answered a part of my own question. I was looking here and didn't find it: Change of ownership (life events) -> Give shares to an individual/organization


However, I found a different, longer form here:
Change owners -> Start -> Give shares or securities to an individual or organization -> Get paperwork ->
Giving Fund Shares to Organizations
Give a gift of Vanguard® mutual fund shares to a non-profit organization.

That form has this option:
Exchange or sell the shares optional
Check one of the following options only if your organization doesn’t want the gifted assets to remain
invested in the same funds as they were when transferred.
X Sell the shares and mail a check to the address the organization has on file at Vanguard


FiveK: thanks for the pointer to the other thread. Reading that makes me wonder if the option above is the one that requires the recipient to have a Vanguard account. I hope not. I'll post when I talk to Vanguard and find out.
I've donated shares in the past. The "Giving Fund Shares to Organizations" is the correct form. The receiving organization has to set up a Vanguard account to receive the shares. The paperwork for them to do that is part of that form. Once you get it set up, it works well. Vanguard transfers the shares, then sells them and mails a check to the charity.

However, please note the following paragraph from the form:
If your recipient doesn’t already own shares of the
fund you’re giving, your gift must meet the fund’s
minimum initial investment. You can find fund
minimums at vanguard.com/us/funds

I was donating Admiral shares of a fund that has a $10,000 minimum, so it limited the number of organizations I was willing to give shares to just one. I've since set up a DAF (at Fidelity, due to the lower minimums).

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