Ann Arbor Area Community Foundation

Gift Options: Stocks, Bonds & Mutual Funds

Many donors give publicly traded securities as a "tax-smart" way to accompish their charitable giving goals - especially in the case of highly appreciated securities.

Publicly Traded Securities
Donors receive a double income tax benefit when gifting publicly traded securities:

  • Capital gains taxes on the securities' appreciated value are avoided, and
  • Donors receive a charitable deduction for the stock's full market value.  Donors can claim a current income tax deduction of up to 30 percent of their adjusted gross income (AGI), with a five-year carry forward, if required.

Publicly traded stocks and bonds may be transferred electronically, re-registered in the name of the Ann Arbor Area Community Foundation, or conveyed through the use of a properly executed stock power form.

Instructions for stock gifts are available online. Please note that these have been updated as of Fall 2017. Contact AAACF at (734) 663-0401 with further questions.

Closely Held Stock
Proposed gifts of closely held stock are reviewed on a case-by-case basis with AAACF's Gift Acceptance Committee. If accepted, donors are entitled to a deduction for the appraised fair market value of the gift - up to 30 percent of the donor's adjusted gross income (AGI). Taxes on capital gains are also avoided.

Please note that before closely held stock can be  accepted, AAACF staff and the Gift Acceptance Committee will review all relevant documentation to obtain a clear understanding of the related business activities, the underlying assets and liabilities, the nature of the ownership interest proposed to be conveyed, and the actual or potential liabilities, if any, associated with holding such securities.

For AAACF's Gift Acceptance Policy.

Mutual Funds
Mutual funds can also be contributed to the Community Foundation. The value of a share in a mutual fund is its public redemption price (the "bid price") on the valuation date. Gifts of mutual funds are deductible at their fair market value - up to 30 percent of the donor's AGI, with a five year carry-forward if required.

Please contact AAACF at (734) 663-0401 for specific delivery instructions.

SPECIAL NOTE:  If you are considering a gift of publicly traded securities, please notify AAACF as soon as possible.  We need to know in advance that the gift is coming to AAACF with the following information:

  • Donor's Name
  • Name of security being gifted to AAACF
  • Number of shares
  • Approximate date the gift will be made
  • Instructions regarding what AAACF fund(s) the gift will benefit

For specific transfer instructions, please call AAACF's office at (734) 663-0401 or email AAACF's  VP for Development Shelley Strickland.