Donation of stock to a charity

Elizabeth S. Robertson on

My club donated stock to a charity in December. Bivio tells
me they have no way to record the transaction and it did not
interface from TDAmeritrade. I need to reduce the number of
shares and cost basis as well as show a deductible expense
for our members before I can prepare the tax return. Can
anyone help me with a work-around?

Rip West on

You don't say how the stock was donated. Did you just instruct your broker to transfer the the certificate to the charity? Here is a way to do it before the fact. You still may be able to work with the charity to accomplish this after the fact.

1) Instruct your broker to transfer the desired number of shares to the charity. [I assume that has already been done].
2) Calculate how many shares of that stock are applicable to each member based on ownership percentages at the time of the gift [or, if you like equally among the partners].
3) Write a letter to the charity that gifts are being made by members of the partnership. Show each member and the number of shares of stock for each member.
4) Ask the charity to write each member a letter showing the number of shares of stock given and the price used to value the stock at that date.
5) In the software, make a new valuation, using the agreed upon stock price for the stock being donated.
6) In the software, make partial withdrawals for each member using the amounts and shares of stock being donated.

The above procedure should take care of all the problems. The members
will be able to deduct the fair market value of the stock being donated.
No capital gains tax will be paid. Each member's account will still be
correct.

Rip West
Saint Paul, MN

Elizabeth S. Robertson on

I really appreciate your work-around. My club was upset to
hear that bivio did not seem to feel they ought to provide
an option to do so. All the literature suggests it is best
to donate appreciated stock to charity, rather than cash. I
will be contacting the charity on Monday to see if I can
make your solution work. And yes, we did instruct the
broker to make the transfer to the charity's brokerage
account. Unfortunately, TDAmeritrade charged us $75 to do
so.

Thank you so much for helping me out.

Rip West on

Elizabeth,

And yes, we did instruct the broker to make the transfer to the charity's brokerage account. Unfortunately, TDAmeritrade charged us $75 to do
so.
>>

That's highway robbery. IMHO.

Rip West
Saint Paul, MN

Arthur Klages on

That charge is an outrage !!!!

We use Schwab and they do this at no charge.

Arthur Klages, Treas.
Senior Investment Club LLC
Greensbnoro NC

---Original Message-----
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Rip West
Sent: Sunday, January 13, 2008 4:58 PM
To: The Club Cafe
Subject: Re: club_cafe: Donation of stock to a charity - Thank you, Rip

Elizabeth,

<<
And yes, we did instruct the broker to make the transfer to the charity's
brokerage account. Unfortunately, TDAmeritrade charged us $75 to do so.
>>

That's highway robbery. IMHO.

Rip West
Saint Paul, MN

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