American Red Cross

Did you know that you can reduce your taxable income by deducting the full fair market value of the securities you donate to the American Red Cross, as long as you have owned these assets for at least one year?

Avoid Capital Gains Taxes

Normally when you sell securities that have gone up in value, you must pay capital gains tax on the increase in value. However, by donating the securities to charity, you do not pay capital gains tax. For example, if you paid $100 for 10 shares of Computer, Inc. in 1997 and the shares are now worth $200, you can deduct $200 - twice as much as you paid for the stock!

Determining the Value of the Gift

For income tax purposes, a gift of securities is valued on the date the gift is completed and is equal to the mean of the high and low of the values traded on that date. If securities certificates are mailed, the gift is complete as of the date postmarked. When hand delivered, it is complete when received by an American Red Cross representative. When transferred electronically, the gift is complete when it arrives into our brokerage account.

Mutual Funds

The mutual fund transfer process is more complicated than that for stock donations and can take much longer to accomplish. To allow ample time for the transfer to occur prior to year-end, we recommend beginning the process no later than November 15th.

Gifts of Stock shares to the American Red Cross Silicon Valley Chapter are by electronic delivery-the most secure and expedient delivery process available while providing efficient internal control as well as cost savings. If you hold the certificates, or if your stock is registered with the company, you may transfer your certificates directly to the Red Cross. To help you facilitate a gift of stock, please use the following instructions.

Notification of Donor Intent

In order for the Red Cross to properly credit and acknowledge gifts of stock, please provide the following information, regardless of the method chosen to deliver your gift of stock:

• Donor's name and complete address (if it is to be anonymous, please indicate)
• Name and number of securities transferred
• Specific Red Cross program to which gift should be directed, if any.

Securities Delivered Electronically

To facilitate an electronic transfer of stock, provide your broker with the following information:

Morgan Stanley
245 Lytton Avenue
Palo Alto, CA 94301

Contact: Tom Simmons
Phone: (800) 755-8081
Fax: (650) 853-4050

Account Number: 112-074113-072

DTC Number:  0015

Tax ID Number:  American Red Cross Silicon Valley Chapter 94-1156472

Please provide a letter or send an e-mail to communicate the above information at time of transfer to the Development Department via email: email or via fax (408) 577-2050.