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Securities and mutual funds that have increased in value and been held for more than one year are one of the most popular assets to use when making a gift to the Hospital for Special Care Foundation. Making a gift of securities or mutual funds to us offers you the chance to support our work while realizing important benefits for yourself.
When you donate appreciated securities or mutual funds you have held more than one year to us in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You are also entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.
Securities are most often used to support our work in the form of:
An outright gift. When you donate securities to the Hospital for Special Care Foundation, you receive the same income tax savings that you would if you wrote us a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20 percent. Making a gift of securities to support our mission is as easy as instructing your broker to transfer the shares or, if you have the physical securities, hand-delivering or mailing the certificates along with a stock power to us in separate envelopes. (Using separate envelopes safeguards your gift—the certificates will not be negotiable without the stock power.)
Mike Timura Funds Healthcare Scholarships with Appreciated Securities
Since 2000, Mike Timura has donated more than $750,000 to the HSC Foundation to fund seven scholarships for young men and women entering healthcare professions. His latest gift, honoring his late wife Florence, will provide financial assistance to a physical therapy student at one of Connecticut's medical schools. In addition to cash, he funded his contribution with appreciated securities. Giving stock to the HSC Foundation reduced his tax burden by eliminating the capital gains tax and qualifying for a federal income tax charitable deduction.
Mike Timura's continuing generosity is inspiring. The Timura Scholarships at HSC will provide opportunities to countless young people beginning careers in healthcare.
A transfer on death (TOD) account. By placing a TOD designation on your brokerage or investment account, that account will be paid over to one or more persons or charities after your lifetime. It is not necessary for the TOD designation to transfer all of the account solely to charity—you can designate a certain percentage of the account. With a TOD account, the beneficiary you name has no rights to the funds until after your lifetime. Until that time, you are free to use the money in the brokerage account, to change the beneficiary or to close the account.
A gift in your will or living trust. If you aren't ready to give up these assets during your lifetime, a gift of securities through your will or living trust allows you the flexibility to change your mind at any time. You can continue to receive dividends and participate in shareholder votes, and the securities are still yours if you need them for other expenses. In as little as one sentence you can ensure that your support for the Hospital for Special Care Foundation continues after your lifetime and that your estate will benefit from a charitable estate tax deduction.
A donor advised fund. When you contribute to a donor advised fund with appreciated securities, you will receive a federal income tax charitable deduction for the fair market value of the asset and eliminate capital gains tax. Because of our nonprofit status, the Hospital for Special Care Foundation does not pay capital gain tax when we sell the gifted securities.
A memorial gift. If you have a friend or family member whose life has been touched by the Hospital for Special Care Foundation, consider making a gift to us in his or her name.
A charitable remainder trust. Highly appreciated securities are one of the best ways to fund a charitable remainder trust. You may be reluctant to sell such assets directly because of the tax you would pay on the gain; however, if the assets were transferred to a charitable remainder trust, the assets can be sold without incurring the capital gains tax. The trustee can then reinvest the proceeds in order to secure a higher current income yield.
A charitable lead trust. Rapidly appreciating assets such as stocks are a great way to fund a charitable lead trust. The assets transferred to the lead trust are frozen in value for transfer-tax purposes at the time of funding. At the end of the trust's term, all appreciation that takes place in the trust will pass tax-free to your heirs.
- Contact Linda Glovna at 860.612.6312 or Lglovna@hfsc.org for additional information on appreciated securities.
- Seek the advice of your financial or legal advisor.
- If you include the Hospital for Special Care Foundation in your plans, please use our legal name and Federal Tax ID.
Legal Name: Hospital for Special Care Foundation, Inc.
Address: 2150 Corbin Avenue, New Britain, CT 06053
Federal Tax ID Number: 06-1534092
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under this agreement, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.