You can donate stock to Indralaya (Orcas Island Foundation) – this is a non-restricted donation
This is a great way to support Indralaya!
How can you maximize your impact by donating appreciated stock directly?
Usually when you sell stock that has appreciated in value, you owe tax on the gains. However, when you donate that stock (instead of selling it) you can be credited with a charitable contribution for the current appreciated value, and you do not pay gains tax. This is especially valuable for US donors (or Canadian donors with US stock). Your contribution of donated stock has a larger donation value than if you sold the stock, paid tax, and donated the proceeds.
How the Process Works
Initiating the Donation
Contact your broker and let them know you would like to transfer stock to Indralaya (Orcas Island Foundation). The transfer is called a “ Depository Transfer” through Schwab Investments.
DTC number: 0164 (Depository Transfer); Code 40
Orcas Island Foundation Account Number: 20558539
You can either direct your broker to transfer specific stocks, or you can request them to select appropriate stocks to equal the value of your desired donation.
Next Steps in the Transfer of Stock
- Schwab receives the stock in the name of OIF.
- Schwab immediately sells the donated stock, records the amount and date of the sale, and informs Indralaya on the date of the sale.
Indralaya’s Response to the Donation
- OIF sends a tax receipt to the donor with relevant details and certification of non-profit tax status. The amount of the donation is the amount that OIF receives from Schwab after Schwab liquidates the stock. See sample tax receipt here.
- OIF sends a separate personal thank you note to the donor.
- If the donor is more than one person (e.g. a couple who file a joint return) all receipts and thank you notes will include both names (this must be specified to Indralaya).
Note – donations of stock can only be “general” (e.g. not restricted) donations according to US tax regulations.
