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Endowment
In
1997, United Way of Merrimack County, in partnership with New Hampshire
Charitable Foundation, established a permanent endowment to benefit the
greater Concord area. The hope is that this endowment will eventually cover
United Way’s administrative costs to enable more donor dollars to go
directly to agency programs. For more information on United Way of
Merrimack County’s endowment, contact Liz Hager at lizh@unitedwymc.org or (603)
224-2595.
Giving Securities to United Way
There
has been remarkable growth in the value of stocks and other investments
over the past decade and donors are taking time to review their
investments, especially when they are considering charitable gifts.American
taxpayers have long enjoyed the opportunity to make charitable gifts of
securities and other investments that have increased in value, thus
bypassing capital gains taxes that would be due on the sale. The federal
tax laws provide that one can give an appreciated asset and take an immediate
income tax deduction for the current fair market value of the asset no
matter what was originally paid for it. In essence, donors are allowed to
use “paper profits” to help reduce federal taxes.A growing number of United
Way donors are making gifts of securities and other investments. This type
of gift has a major impact on United Way and our community. The donor
benefits from reduced income taxes and avoided capital gains taxes and our
community benefits by increased support.
Deduct the Market Value of Stock
Federal
tax law permits taxpayers who itemize to deduct the current market value of
contributed stock from their adjusted gross income. The taxpayer must have
held the stock for more than one year.For example, Jim and Sally purchased
stock more than l8 months ago for $400 and it is now worth $2000.By giving
this stock away, Jim and Sally may qualify for a $2000 deduction even
though their original cost was $400.
Save on Capital Gains Tax
Many
people benefited from the gain in the stock market over the past few years.
However, the gain in market value brings a capital gains tax liability when
the stock is soldIn the case of Jim and Sally, assuming their stock
experienced a $1600 gain ($2000 market value less $400 original cost =
$1600 gain), they would need to pay a $320 capital gain tax ($1600 gain X
20% = $320) were the stock sold.However, by giving the stock to United Way,
Jim and Sally would eliminate the need to pay the capital gains tax.
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Reduce the Cost of Your Gift
By
obtaining the double savings from income tax deduction and elimination of
capital gains tax, Jim and Sally actually cut their “cost” of making a
gift. Assume they are in the 31% tax bracket, their gift of cash or stock
would result in a $2000 charitable deduction or a $620 “out of pocket” tax
saving. But the gift of stock would also generate a $320 capital gains tax
savings resulting in a lower “cost” of the gift.If you decide to make a
gift through stock this year, you can make the transfer in one of two
manners:Transfer to United Way Account
If
you have an account at a brokerage firm, simply transfer the appropriate
amount of stock to the United Way account at UBS PaineWebber. Instruct your
firm to transfer the stock to:
UBS
10 Park Street
Concord, NH 03301
DTC#221 UW Account
#CV17134 Broker #16
Please
have your broker notify PaineWebber at (603) 225-6601 or us at (603)
224-2595. Once the stock is transferred to United Way’s account, we will
confirm your gift by letter.
Send Shares Directly to United Way
To
send shares directly, please fill out a stock power and mail directly to
United Way of Merrimack County. Additionally, send the actual stock
certificate(s) that you wish to donate, in a separate envelope, to United
Way. Once United Way has received your stock and stock power, we will
confirm your gift by letter. If you have any questions regarding
transferring stock please contact:
Cindy Read
Director of Finance
at United Way
Phone: (603) 224-2595
View the United Way of Merrimack County 2006 IRS 990
 click to download (file size 1.63MB)
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