Most people think of writing a check when they want to make a charitable gift. However, gifts may be made with many types of property.

Often, there is a greater tax advantage to making non-cash gifts. Many donors have found that they achieve substantial savings by giving appreciated securities (stocks or bonds that have grown in value since they were originally purchased). You may deduct the full market value of appreciated securities, and avoid any obligation to pay capital gains taxes.

Example (See table below) As part of her investment portfolio, Maria owns oil company stock bought in her name for $1,000 by her grandfather. The stock is now worth $5,000. As an environmentalist, Maria is not comfortable holding oil company stock, but is reluctant to pay capital gains taxes on the profits, should she sell the stock. At the same time, Maria is planning a charitable gift to Crossroads Fund of an amount equal to the value of the stock. The table illustrates the financial impact of her gift when made with 1) cash proceeds from the sale of the stock, 2) cash, or 3) the stock itself.

As you can see, option three results in the lowest cost of giving. This is because Maria receives a deduction for the full current value of the stock while also avoiding tax on the capital gain. In effect, she saves taxes twice by giving the appreciated stock to Crossroads Fund. As a charitable foundation, Crossroads Fund can sell the shares and not pay taxes on the gain.

Note: this table assumes 35% federal and state income tax and 20% federal capital gains tax.

* If you are selling depreciated stock, you will gain more tax benefits by first selling the stock and then donating the proceeds.

Gifting securities to Crossroads Fund is simple...

Securities must be received by Crossroads Fund in the calendar year for which you intend to take the tax deduction (in other words, by December 31st.) It is best to allow six weeks for the transfer.

Suggested process:

Consult with your tax and investment advisors about the amount and types of securities you wish to give.

Call Crossroads Fund’s Executive Director, Jeanne Kracher, to review the process: 773.227.7676.

• If you are gifting mutual fund shares, the mutual fund will usually be happy to set up a courtesy account for Crossroads Fund. Ask the mutual fund or your investment advisor to send the new account forms to Crossroads Fund. Then prepare a letter of instruction to the mutual fund, asking them to transfer the designated number of shares to the new Crossroads Fund account, at no sales fee.
• If you hold your own stock certificates, you can safely transfer those certificates to Crossroads Fund’s investment account at T.D. Waterhouse.
• If you have an investment account of your own at T.D. Waterhouse, draft a letter of instruction to T.D. Waterhouse, listing your account number, the number and type of securities you wish to transfer, and the instructions to transfer to Crossroads Fund’s account.
• If you have an investment account at another brokerage, write a letter of instruction to your broker with your directions to transfer the securities to Crossroads Fund’s account at T.D. Waterhouse.

Have questions? Ready to gift securities to Crossroads Fund? Contact Jeanne Kracher, Executive Director, at 773.227.7676 or .

Interested in socially responsible investing? Visit www.socialinvest.org

Crossroads Fund is a 501(c)(3) tax-exempt organization. Our federal tax identification number is 36-3092907.