Securities FAQ

Here are some questions you might have about donated securities:

 

What are “appreciated securities”?

Ans. Stocks, bonds and/or mutual funds that have realized significant appreciation over time, minimally for longer than one year and one day.

What if I’ve held the security for fewer than 366 days?

Ans. For appreciated securities that you have held for less than one year and one day, only the cost basis is deductible.

What if I’ve lost value in a security but I still want to donate?

Ans. If a stock has decreased in value since its purchase, it is usually more advantageous for you sell the security, claim an investment loss on your tax return, and then contribute the cash proceeds.

What if I’ve “made” money on a security; that is, in terms of its current (paper) market value?

Ans. Since the securities are donated rather than sold, capital gains taxes from selling the securities no longer apply. The more appreciation the securities have, the greater the tax savings will be.

Why is The PCCA a good fit for me?

Ans. #1. A donation to The PCCA affords the highest level of tax benefit allowable by the IRS.
Ans. #2. Hopefully you’re interested in preserving Open Space areas, want to help ranchers establish conservation easements on their properties, support wildlife studies that benefit the agricultural community.

If you have answered yes to any or all of these topics, then you will reap a two-fold benefit because all of those actions are what The PCCA does AND you can tailor your donation as a donor-advised contribution to the local program of your choice, which includes our easement program, our open space/preserve program, or one of our research projects.

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Ultimately, the tax advantages from which you benefit have the end result of benefiting The PCCA and the programs it sponsors. The capital gains savings are transferred directly to a charitable account of your choosing rather than funding state and federal programs not of your choosing.

If you’ve made the decision to take advantage of this means of giving, please complete our Securities Donation Form, which will notify us of your intention to make a gift of stock to The PCCA. Please make sure you notify us of prior to every stock transfer so that we may accurately identify, allocate, and acknowledge your gift.

Please do NOT use this form for donations of restricted stock or stock traded on non-U.S. markets. We cannot at this time accept these donations. Also, the Securities Donation Form should not used for mutual fund transfers or cash donations.