Are you considering donating stocks to United Way of the Midlands?  Click here to read how to donate stock and how it impacts you and United Way.

Under current IRS regulations, gifts of publicly traded stock are deductible at the full market value of the stock on the day on which you make the contribution.

Why donate stock?

It is advantageous for donors to pay their contribution with certain stocks because they receive an income tax deduction for the entire fair market value of the stock without having to pay any capital gains tax on the appreciation (difference between their basis in the stock and its fair market value). In order to qualify for the full deduction, IRS regulations require that the donor must have owned the stock for a period long enough to classify any gain on its disposition as a long-term capital gain rather than ordinary income or short-term capital gain.

How is a stock contribution done?

When making the pledge: When filling out the pledge card, the donor should be sure to mark the payment type labeled “direct bill” or “stock contribution”.  This sets up the donor’s account to receive payment through a method other than payroll deduction.  Please contact United Way of the Midlands by phone at (402) 522-7942 for more information on this procedure.

What documentation do I need for the tax deduction on a stock contribution?

Per IRS regulations, the charitable organization is not supposed to provide a valuation for stock contributions. However, the organization is required to provide a receipt which provides a detailed description of the gift, the date the gift was received, and that no goods or services were provided in exchange for the gift. These receipts are usually sent out in January each year. The donor’s broker can provide a market valuation of the stock on the day it was transferred. These two documents combined provide adequate documentation to support the deduction.

Who should I call if I have questions about donating stock?

Please dial (402) 522-7942 or e-mail the Administration and Finance Department.