Many people find making a gift of securities to be both easy and often financially beneficial. Stock gifts are valued based on the mean price of the stock on the date of the gift. No capital gain taxes are due on stock that is gifted to Friends of Ridhwan. However, it is important to follow some simple steps to expedite the transfer of the stock to Friends of Ridhwan.
If you would like to transfer shares electronically, please:
- Complete the Stock Transfer Form provided by FOR and either email a PDF of it to us at email@example.com or fax it to 510-528-5311.
- Provide your broker with the Stock Transfer Information on the Stock Transfer Form.
You must be sure the broker does not simply sell the stock and then transfer the proceeds. Such a step triggers a taxable transaction for you. If you have the stock certificate, please simply send the certificate(s) to:
Friends of Ridhwan
P.O. Box 10174
Berkeley, California, USA, 94709
- Do not sign the certificate(s).
- Rather, sign a blank stock power form (provided by your broker’s office or, a bank) and then use the signed stock power form to receive a medallion signature from your bank. The medallion signature is certification of your identity. After the stock power form has the medallion signature, mail the form to Friends of Ridhwan
- If your stock certificate is for more shares than you want to gift, Friends of Ridhwan will have the certificate split, re-issuing to you the number of shares you designate.
Stocks - To make a stock shares donation, please follow the instructions on the Stock Transfer Form
Mutual Funds - A gift of mutual fund shares needs to be handled carefully. It often takes several weeks, months sometimes, to accomplish the transfer and usually requires a signature guarantee. Please contact your mutual fund for a form it may have available to you for making charitable gifts. Such forms may be available on a web site but generally require downloading and mailing with original signatures and guarantees.
In 2015, the Protecting Americans from Tax Hikes (PATH) Act made permanent the IRA charitable rollover provision, giving individuals age 70 1/2 or older the ability to transfer up to $100,000 a year, tax-free, from an IRA to one or more qualifying charities.
A charitable IRA rollover (from a traditional or Roth IRA) can be a significant way for individuals to make a generous donation to Friends of Ridhwan, while avoiding or mitigating income tax and tax treatment on appreciated assets. The rollover is not subject to the usual percentage limits for charitable deductions.
The qualified charitable distribution (rollover) can satisfy the required minimum distribution (RMD) from the IRA, and may offset most or all of the taxable income recognized through the RMD. Please consult with your financial or retirement advisor about this and contact Friends of Ridhwan for any additional information you may need.
Individuals or couples who have established donor-advised funds (DAF) may support the Diamond Approach at any time by recommending that their fund support Friends of Ridhwan. Because you have already received applicable tax benefits by making donations to your DAF, you will not receive additional benefits in making such a recommendation.
Friends of Ridhwan asks that you mail or fax to us a signed copy of an “Intent to Recommend” form provided to you by your fund manager for this purpose.
Students of the Ridhwan School and other friends of the Diamond Approach have increasingly asked for information on how they might make planned gifts. Planned gifts are recognized both in the United States and in other countries as ways in which individuals may make significant charitable contributions that can also provide themselves and/or their heirs with significant tax and other financial benefits.
In addition to the general information below, Friends of Ridhwan offers donors the following documents that are easily downloaded and printed for your use:
- Planned Gift Intention Form – Please use this form to indicate to FOR your planned giving intentions.
- Planned Giving Flyer – With additional information on why and how to make a planned gift.
- Sample Language for a Bequest – Simple, standard wording to use in naming Friends of Ridhwan as a bequest beneficiary.
- Gifts of Retirement Plan Assets and Insurance – Information you will need in giving to Friends of Ridhwan through one of these vehicles.
Planned gifts are classified into two general types:
- Irrevocable Deferred Gifts – Gifts received by Friends of Ridhwan through which a donor receives an immediate tax deduction but through which Friends of Ridhwan will receive financial distribution at a later date. Such planned gifts typically include:
- Trusts (Lead or Remainder)
- Life Estate Gifts
- Charitable Gift Annuities
- Charitable Gift Expectancies – Revocable designations through which the donor has yet to receive any tax benefit and through which the Friends of Ridhwan will benefit at a later date. Such expectancies typically include:
- Bequests (wills)
- Retirement Fund Designations
- Insurance Gifts
If you would like to discuss donation via a planned giving arrangement, please contact Friends of Ridhwan or contact one of the board members directly.
If you would like to discuss donation of real estate or other personal property, please contact Friends of Ridhwan or contact one of the board members directly.