Did you know that you can reduce your taxable income by deducting the full fair market value of the securities you donate to the Red Cross, as long as you have owned these assets for at least one year?
For example, if you paid $100 for 10 shares of Computer, Inc. in 1997 and the shares are now worth $200, you can deduct $200—twice as much as you paid for the stock!
Avoid Capital Gains Taxes
Normally when you sell securities that have gone up in value, you must pay capital gains tax on the increase in value. However, by donating the securities to charity, you do not pay capital gains tax.
Determining the Value of the Gift
For income tax purposes, a gift of securities is valued on the date the gift is completed and is equal to the mean of the high and low of the values traded on that date. If securities certificates are mailed, the gift is complete as of the date postmarked. When hand delivered, it is complete when received by a Red Cross representative. When transferred electronically, the gift is complete when it arrives into our brokerage account.
Mutual Funds
The mutual fund transfer process is more complicated than that for stock donations and can take much longer to accomplish. To allow ample time for the transfer to occur prior to year-end, we recommend beginning the process no later than November 15th.
Electronic Transfer of Stock
If your stock is held in a brokerage account, please instruct your broker to transfer the shares to the American Red Cross Bay Area account. To expedite the transfer process for our donors, we maintain several brokerage accounts. The Red Cross brokerage accounts with account number, DTC number and contacts are listed below.
Contacts
 Bear Stearns: Bruce Blockley, (415) 772-3262
Charles Schwab: (800) 435-4000
Fidelity: Jessica Howlett, (415) 433-0777
Merrill Lynch: Percy McGee, (510) 208-3805
Morgan Stanley: Theo Taft Schwabacher, (415) 693-6381
Vanguard: (800) 662-2739
Wells Fargo: Mark Cavalier, (415) 396-2318
Let Us Know
So that we can match your stock or mutual fund gift with your name and address for receipt purposes, please notify us of the pending transfer by providing the name(s) of the stock(s) or mutual fund(s) and the number of shares or units along with your name and mailing address particulars.
Feel free to notify us by writing, calling or e-mailing as follows:
Gary Ogburn
American Red Cross Bay Area Chapter
85 Second Street, 8th Floor
San Francisco, CA 94105
tel: (415) 427-8171
e-mail: ogburng@usa.redcross.org
Before making a gift of stock to the American Red Cross Bay Area, we recommend that you consult your tax advisor or attorney for full advice on the effect of your gift.
If you have actual stock certificates, wish to contribute mutual funds, or would like to participate in the Red Cross Annuity Program—or for more information—please contact Gary Ogburn at ogburng@usa.redcross.org, (415) 427-8171, or Bill Ruettinger at ruettingerw@usa.redcross.org, (415) 427-8989.
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