UNDERSTANDING THE OPTION
A donor may transfer shares electronically from a brokerage account. the Episcopal Diocese of Chicago can then sell the shares and use the proceeds for its mission. The donor should not sell the shares first if the objective is to contribute the security itself.
For publicly traded stock, the charitable value is generally determined under federal valuation rules rather than simply using the closing price. Mutual funds and bonds have their own transfer and valuation procedures.
Securities registered in certificate form require special handling. Never sign a certificate or mail it without current instructions from the organization and your broker.
Why donors consider it
- Potential charitable deduction subject to applicable rules
- Avoids a sale by the donor before the gift
- Can simplify portfolio rebalancing
- Puts the asset’s full charitable value to work
A thoughtful process
- Contact the Episcopal Diocese of Chicago for current brokerage instructions
- Tell your broker the security and number of shares
- Send the Episcopal Diocese of Chicago a separate notice identifying the gift
- Keep brokerage confirmation and the gift acknowledgment
Points to discuss with your advisors
- Do not place the Episcopal Diocese of Chicago’s transfer instructions on a public page without approval
- Closely held stock is different from publicly traded stock
- Deduction limits and valuation rules vary
- The gift date depends on how the transfer is completed
This overview is not legal, tax, investment, or financial advice and does not confirm that the Episcopal Diocese of Chicago can accept a particular asset or arrangement. Please consult qualified advisors and contact the Episcopal Diocese of Chicago before taking action.