Fox Lake, IL asked in Securities Law for Illinois

Q: How do I donate stock to a charity?

Related Topics:
1 Lawyer Answer
T. J. Jesky
T. J. Jesky
  • Chicago, IL
  • Licensed in Illinois

A: Before you donate any stock to a charity, you should check with the charity first to determine if they will accept the stock.

Once you determine, the charity will accept the stock, you need to transfer the stock into their name.

The transfer depends if you have the stock in certificate form, or if the stock is deposited with broker.

Certificate form:

On the back of the stock certificate, indicate the name of charity you plan to transfer the stock, on the back of the stock certificate, there is a place for your signature. Before you sign, take the stock certificate to you bank, and ask for a Signature Guarantee (a green stamp). Sign and have the bank stamp the certificate. Once this is accomplished, send the stock certificate to the transfer agent, listed on the front of the stock certificate. Send the transfer agent the certificate with a simple letter telling them want you want to do.

In Brokerage account:

If the stock is in a brokerage account, you can tell you broker that you a certificate issued in your name for the amount of shares you wish to transfer to the charity. The broker will notify the transfer agent to send you a certificate, and the shares will be deducted from your account.

If the charity has their own brokerage account, you can transfer the shares electronically. Ask you stock broker for ACAT form and the broker can transfer the shares for you.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.