Stock & Securities
Contributing long-term appreciated securities (rather than selling them) and donating the proceeds of the sale, is almost always to a donor’s advantage. Long-term gifts are defined as one year and one day.
A donor may claim the full fair market value of donated securities as a charitable deduction on their income tax.
A donor will avoid paying capital gains tax on the increase in the value of the securities that are donated.
How to contribute securities directly to Children's Health?
Please contact Gift Planning at 214-456-8360 or email
giftplanning@childrens.comLet us know what is being contributed, and we will provide the instructions necessary to complete the gift.
OR
Visit our website
and follow the instructions listed.
If actual stock certificates are being used, please mail the unsigned stock certificates by certified mail to:
Gift Planning Children’s Medical Center Foundation 2777 N. Stemmons Fwy., Suite 1700 Dallas, Texas 75207
Each stock must also have a signed stock power that should be mailed to the same address at the same time. Please mail the stock certificates and stock powers in separate envelopes.
If the stock is registered in more than one name, each person must sign the stock power form. Sign only your name(s) on the stock power form and sign exactly as your name appears on the stock certificate.
Please include a note with the stock certificates indicating the designation of your gift.
This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.
Important Considerations
Before pursuing this giving method, donors should be aware of the following:
Long-term vs. short-term holdings: Only long-term appreciated securities — those held for more than one year and one day — qualify for the full fair market value deduction. Short-term holdings are deductible only at cost basis.
Notify us before transferring: Donors should contact the Legacy and Gift Planning team (214-456-8360 or giftplanning@childrens.com) before initiating a stock transfer. This ensures proper identification and crediting of the gift.
Do not sell before donating: Selling appreciated stock and then donating the cash proceeds eliminates a charitable deduction as well as subjects the sale to capital gains taxes. Transfer the shares directly to receive the maximum tax advantage.
Valuation date: For publicly traded securities, the fair market value is based on the average of the high and low trading prices on the date the shares are transferred — not the date you initiate the transfer.
Physical certificates: If using physical stock certificates, they should be delivered to Children’s Medical Center Foundation only by certified or registered mail or by hand. A stock certificate, signed by the donor and naming Children’s Medical Center Foundation or Children’s Health as transferee, is to be sent in a separate envelope, using certified or registered mail, or hand delivered.
This information is not intended as tax, legal, or financial advice. Consult your personal financial advisor for information specific to your situation.
Key Rules and Guidelines
The following IRS rules, limits, and requirements apply to this giving method:
Deductibility of appreciated stock: Donors may deduct the full fair market value of long-term appreciated securities (held more than one year) donated to a public charity, subject to IRS AGI limits of 30% for appreciated property gifts.
Capital gains tax avoidance: When you donate appreciated stock directly to a qualified charity, neither the donor nor the organization is subject to capital gains tax on the appreciation. This benefit does not apply to securities donated at a loss.
AGI deduction limits: Gifts of appreciated securities are deductible up to 30% of AGI; gifts of cash are deductible up to 60% of AGI. Unused deductions may be carried forward for up to five additional tax years.
IRS Form 8283: Donors who claim a non-cash charitable contribution deduction exceeding $500 must complete IRS Form 8283. Contributions over $5,000 require a qualified appraisal (though publicly traded securities are exempt from the appraisal requirement).
Substantiation: Children's Medical Center Foundation will provide written acknowledgment of the gift, including the date received and number of shares. Donors should retain this acknowledgment for tax filing.
Rules and limits referenced above reflect current law. Tax law is subject to change. Please consult a qualified tax or legal professional for advice specific to your situation.
