Gifts of Stocks
Many donors make outright gifts and pledges in the form of appreciated securities rather than cash, in order to benefit from extra tax advantages. If you itemize, gifts of securities are based upon the full, fair market value and are deductible for federal tax purposes, up to a limit of 30 percent of your adjusted gross income for the first year, with a five year carryover.
You avoid paying a tax on capital gains, which you would owe if you sold the securities.
Instructions for gifting stock to Inova Health System Foundation
For securities held in "street name" by bank or brokerage:
Your broker can simply transfer the stock from your account to the Inova Health System account, via electronic transfer. To do so, we suggest:
- Contact either Patricia Bowen, Development
Specialist, Inova Health System Foundation, 703-289-2056, patricia.bowen@inova.org OR Seema Khan, Senior
Accountant-Corporate Finance, Inova Health System, 703-289-2429, seema.khan@inova.org
You or your broker must contact the Foundation or our accounting office before the stock transfer procedure begins. This is important because our broker must be notified and instructed to accept the gift. Otherwise there is a possibility that the gift might be delayed or rejected, which might inhibit the completion of your gift by the desired gift date.
The information we will need from you or your broker is:
- type and name of stock you plan to transfer
- the approximate number of shares
- contact information for your broker and brokerage house.
- Call, write or email your broker and give him or her the
following information:
- DTC Number: 0997
- Customer/Fund Name: Inova Health System Foundation
- Customer Account number: 06D6
- ABA number: 011-000-028
- Bank contact and address:
State Street Financial Center
Attention: Jason R. Saucier, Financial Information Officer
Institutional Investor Services
State Street Bank & Trust Company
2 Avenue de Lafayette, LCC2
Boston, MA 02111-2900
Phone: 617-664-0817
Fax: 617-769-6761
Email: jrsaucier@statestreet.com
- Send a follow-up letter to your broker, with a copy to Inova Health System Foundation, which confirms your instructions.
For securities held by you:
- Send your certificate by ordinary first class mail, without
any endorsement or other notation, to:
Inova Health System Foundation
8110 Gatehouse Road, Suite 200E
Falls Church, VA 22042Enclose a letter stating your intent to make a gift to benefit the Inova Health System hospital, facility or program of your choice.
- Under separate cover, forward by first class mail a
stock power (one for each certificate), endorsed in blank (your
signature only, exactly as your name appears on the face of the
certificate), along with a copy of the letter mailed with the
certificate. Since the certificate becomes negotiable only when
joined by the stock power, this method provides both safety
and simplicity.
Stock power forms are readily available at your bank or brokerage house or from Inova Health System Foundation. In some cases, you may need a "signature guarantee" from your bank or broker for the stock power. Please call us for details and further instructions.
Important Don'ts
- Do not instruct your banker or broker to sell the securities for your account and forward the proceeds to Inova Health System. This transaction would represent a cash contribution and you would be liable for the capital gains tax.
- Do not deliver your certificate to the issuing corporation or its transfer agent to be reissued in the name of Inova Health System Foundation. This process can be lengthy and the date of your gift is considered to be the date on which the corporation issues the new certificate in Inova's name. In the interim, the stock may decline in value or you may not complete the gift in the tax year you intend.
Please contact Linda Robertson at 703-289-2097 or linda.robertson@inova.org with questions about other planned gift options.
