Gifts of Stock and Mutual Funds

Securities and mutual funds that have increased in value and been held for more than one year are popular assets to use when making a gift to the UWM Foundation. Making a gift of securities or mutual funds offers you the chance to support our work while realizing important benefits for yourself.

When you donate appreciated securities or mutual funds in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be 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 UWM Foundation, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.

A transfer on death (TOD) account.* By placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime.

An Example of How It Works

Kim saved and invested diligently to prepare for retirement. Now that she is 65, she is ready to diversify her portfolio and make a gift to the UWM Foundation. She considered a cash gift, but when talking with her financial advisor she realized she could maximize her tax benefits if she gives stock directly to the UWM Foundation. She reviews her stock portfolio and decides to use $50,000 in stock (which she originally purchased for $20,000) to fund a gift to the UWM Foundation. Kim not only qualifies for an income tax deduction but also eliminate capital gains taxes. She is able to deduct up to 30% of her adjusted gross income (AGI). She can carry over any remaining amount for an additional 5 years.

Additional ways to fund your gift:

• A gift in your will or living trust.
• A donor-advised fund.
• A memorial gift.
• An endowed gift.
• A charitable gift annuity.
• A charitable remainder trust.
• A charitable lead trust.

*State laws govern transfer on death accounts. Please consult with your bank representative or investment advisor if you are considering this gift.