Donating appreciated securities — stocks, bonds, or mutual funds that have grown in value — can be an easy way of making a contribution to MPP, and one which may have tax advantages for you. You might even be able to consider a larger gift than you would have otherwise given — the size you wish you could make!
Tax benefits: If you transfer long-term held stock to a 501(c)(3) charitable organization such as MPP Foundation (rather than selling the stock and giving the cash), you do not have to pay the capital gains tax on the appreciated value of the stock and you can take a charitable deduction for the full current value of the stock.
These tax benefits only apply to securities that have been held for more than one year. Securities that have been held for one year or less are considered short-term for tax purposes. The charitable deduction for such gifts is limited to "cost basis" (the original value of an asset — usually the purchase price — adjusted for stock splits, dividends and return of capital distributions). Unless the cost basis is close to fair market value, you will likely find it more financially beneficial to make charitable gifts with securities held long-term (more than one year).
To make a gift of stock, let your broker know that you want to transfer stock to the Marijuana Policy Project Foundation (Tax ID #52-1975211). Your broker will want to know the name of the stock(s) and the number of shares you are contributing.
After you have notified your broker, please contact MPP Foundation at (202) 462-5747, ext. 2016, or at membership.director@mpp.org. We will need to know the name and telephone number of your broker, the name of the stock(s), and the number of shares you are contributing. If you request the transfer in writing, please mail a copy of the transfer request letter to MPP Foundation at 236 Massachusetts Ave. NE, Suite 202, Washington, D.C. 20002.
Please remember to tell your broker not to just sell the stock and forward the proceeds to MPP Foundation. This will jeopardize your tax savings benefits. Stock should be transferred to MPP Foundation's account. We will notify you with the dollar amount of your gift, based on the date the transfer is completed. Gift value is based on the average of the stock's high and low price on the day of transfer.
The purpose of this page is to provide general information only. The Marijuana Policy Project does not provide legal or tax advice. Please check with your tax and legal advisors when planning your charitable gift.
