Give a gift of mutual funds
For tax purposes, treat gifts of mutual funds the same way you treat stock in individual companies.
Tax deduction
If you have held the mutual fund shares for more than one year, you are entitled to a charitable income-tax deduction based on the fair market value of the gift.
Limits
Tax laws limit how much you may deduct in any one year to 30 percent of your adjusted gross income.
No capital-gain tax
You won't owe capital-gain tax on the shares you transfer. To take advantage of these tax benefits, you must transfer the mutual fund shares directly into OFB’s name. If you redeem the shares and donate cash, you lose all capital-gain tax benefits.
To transfer mutual fund shares
FIRST: Inform Oregon Food Bank that you intend to make the gift. Tell us:
- the name of the mutual fund company,
- the specific name of the fund,
- the value of the shares and
- the name and phone number of your contact at the mutual fund.
Unless we have received a prior gift of the same family of mutual funds, OFB will need to establish an account with the mutual fund company and then give you the account information.
NEXT: Send written instructions to the mutual fund company.
- State your intent to make a charitable contribution.
- Ask the company to transfer the shares "in-kind" to the account established by OFB. (OFB will call first to make sure this language will result in a transfer of the shares without first redeeming them. Different companies require different key wording.)
Your transfer instructions must include
- your account number,
- the number and identity of shares you want to transfer,
- when you want to make the transfer and
- the name of the transferee (Oregon Food Bank).
Sign the transfer instructions in the presence of a bank or brokerage officer. Make sure your signature is guaranteed. Notarization is not sufficient.
Please send us a copy of your written instructions to the mutual fund company. Note on our copy any restrictions on the gift, for instance, if all or a portion of the gift is restricted for Oregon Food Bank's Quasi-Endowment Fund. We can follow up with the mutual fund company and help if necessary.
IMPORTANT:
This process may take some time to complete—sometimes up to four weeks. Therefore, we need to know if you plan to transfer mutual funds close to the end of the year and want to complete the gift before the end of the year.
For more information, call Gina Taylor, 503-419-4193
or e-mail gtaylor@oregonfoodbank.org.
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