Outright Gift of Securities

If you contribute long-term appreciated securities (held at least 1 year), you have the added benefit of owing no tax on their appreciation, thus avoiding long-term capital gains taxes.

Suppose you decide to donate some stock shares (few enough that you retain 50% ownership) to us. And then we present the stock to your corporation for redemption. Your corporation uses retained earnings for the purchase. We win because we receive much needed funds. But you and College of the Atlantic also win.

There’s one caveat: the IRS has ruled you cannot legally bind a charitable organization to go through with the redemption at the time it receives the shares. But a charitable organization may independently offer the donated stock for redemption.

It’s a favorable option that benefits you and College of the Atlantic. Gifts of stock that have increased in value and have been owned long enough to qualify as long-term (one year and a day) are deductible for the full value of the stock at the time of the gift and are not subject to capital gains tax.

Stock Transfer Information
DTC Code: 0235
Acct: 301-20794-1718
Name of firm: RBC Wealth Management
Contact: Ben Smith
(800) 543-4847
Account Name: College of the Atlantic
Please include donor name and phone number.

Please notify Laura Johnson, director of the annual fund, of your intention to gift stock so that she may credit your account promptly. Laura may be reached at 207-801-5621 or ljohnson@coa.edu.



Benefits

  1. No capital gains tax on the appreciation in value.
  2. No second tax on accumulated earnings by averting a dividend distribution.
  3. You maintain control of the corporation.
  4. Income tax deduction for the charitable contribution.