Transferring Appreciated Securities to a Charity

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AlwaysaQ
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Joined: Fri Apr 13, 2007 7:37 am

Transferring Appreciated Securities to a Charity

Post by AlwaysaQ » Tue Dec 12, 2017 2:33 pm

Must one use a Donor Advised Fund to do this? Could one move the securities (shares of a mutual fund) to another account and make the charity the beneficiary? I understand that the second choice doesn't give me any tax benefit but it is revocable if necessary.

livesoft
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Re: Transferring Appreciated Securities to a Charity

Post by livesoft » Tue Dec 12, 2017 2:38 pm

No, one does not need to use a DAF for this. But the 2nd thing you wrote about is not done either. One can give the shares to the charity and they will put the shares in their already existing brokerage account. If they don't have an already existing brokerage account, then the charity has to create one for itself which many small-time charities will generally not do because of the expense for a one-off donation of shares.

Now if you are thinking of dying and having that account go to a charity on your death, that happens, but there is no real tax benefit to a dead person.
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AlwaysaQ
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Re: Transferring Appreciated Securities to a Charity

Post by AlwaysaQ » Tue Dec 12, 2017 3:06 pm

How do you transfer mutual fund shares to a charity?

I understand that the second option has no tax benefits to me but the funds will go to the charity on my death unless I need to use it while I'm alive. It is an answer to question "How do you know you have enough".

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HueyLD
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Re: Transferring Appreciated Securities to a Charity

Post by HueyLD » Tue Dec 12, 2017 3:15 pm

http://www.vanguard.com/pdf/fgfs.pdf

Follow the form instructions.

alex_686
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Re: Transferring Appreciated Securities to a Charity

Post by alex_686 » Tue Dec 12, 2017 3:19 pm

AlwaysaQ wrote:
Tue Dec 12, 2017 3:06 pm
How do you transfer mutual fund shares to a charity?
Contact the charity. Most will have a person designated to handle donation issues. Most would have a plan set up for this type of thing. I would listen to how the charity wants to handle this type of donation and I would be inclined to follow their script. You don't want to cause headaches and problems for the charity when you die.

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