Many individuals choose to make a gift to the Madison Youth Performing Arts Foundation by donating shares of stock or appreciated securities. History shows that investing in the stock market over the long term has many advantages. Many security holdings have a tremendous level of unrealized gain. That is the good news. The bad news is that if these appreciated securities are sold, a significant amount of the gain could be lost to federal taxation, plus additional state taxes. If you want to make gifts to the Madison Youth Performing Arts Foundation, now is the time to consider the effectiveness of gifting appreciated assets instead of cash or checks.
If you are holding appreciated securities (stocks, mutual funds, etc), a large capital gain can turn an asset into a liability when it comes time to sell. There are many tax benefits to you when you transfer ownership to MYPAF. For example:
- Provided you have owned an asset, such as corporate or mutual fund stock, for at least 12 months, if you give the stock to MYPAF, or any charity, you are entitled to a charitable income tax deduction for the fair market value of the gifted securities as of the date of the gift.
- Capital gains tax is eliminated since you are gifting the securities directly to a charity versus selling them on the open market.
- You can claim your charitable deduction against up to 30 percent of your adjusted gross income. Any unused deduction can be carried forward over the next five years
Obviously, this type of gifting benefits both you and our Foundation! You get an additional tax deduction and the Foundation gets a larger gift than if you had sold the stock, paid tax on the gain, and given the remainder to us.
If you transfer stock before December 31, you can claim the tax deduction on your tax return this year!
To make a gift of stock to MYPAF, you can simply transfer securities to MYPAF by:
Direct Wire Transfers
Electronic transfer of securities is easy and prompt, with no need for reissued certificates. The following information is all that you need for your broker to initiate the transfer.
Brokerage Firm: American Enterprise
Account Name: Madison Youth Performing Arts Foundation, Inc.
Account Number: 6684 1503 7 021
Tax ID: 39-1276610
Unless you choose to make an anonymous gift, please be sure to either notify us that a transfer is pending, or have your broker indicate your name and acknowledgement information.
Simply sign the back of the original stock certificate and mail it to us with acknowledgment information and any other instructions to:
Madison Youth Performing Arts Foundation, Inc.
2912 Marketplace Drive
Fitchburg, WI 53719
Attn: Andy Davis
Before you request a transfer, please send us an e-mail to let us know the name of the corporation (issue), the number of shares, and the expected transfer date and the name and telephone number of your broker. Contact Us
You should always check with your own tax advisor before making a gift of stock or securities.