A Guide to Making a Gift of Stock

Amplify Your Impact Through Appreciated Securities

Donating publicly traded stock is one of the most tax-effective ways to support Central Music Academy. By gifting securities directly to CMA, you can significantly increase the value of your contribution while realizing substantial tax savings for yourself.

Why Give a Gift of Stock?

  • Eliminate Capital Gains Tax: When you donate stock that has increased in value (and that you have held for more than one year), you do not have to pay capital gains tax on the appreciation.

  • Full Fair Market Value Deduction: You can typically claim a charitable income tax deduction for the full fair market value of the shares at the time of the gift, regardless of what you originally paid for them.

  • Give More for Less: Because you are avoiding the tax you would have paid if you sold the stock first, you can often make a larger gift to CMA than you could with a cash donation.

Step-by-Step Instructions

1. Consult Your Advisor We recommend speaking with your financial advisor or tax professional to determine which securities in your portfolio are the most advantageous to donate.

2. Initiate the Transfer Contact your broker to initiate a "DTC Transfer" (Depository Trust Company). Your broker will need the following information to move the shares to Central Music Academy’s account:

  • Recipient Organization: Central Music Academy

  • Organization Address: 3295 Eagle View Lane, Lexington, KY 40509

  • Tax ID (EIN): 61-1466695

  • Brokerage Account Details:

    Broker: LPL Financial

    DTC #: 0075

    Account Number: 4926-1890

3. Notify Central Music Academy Security transfers often arrive in our account without the donor’s name attached. To ensure we can properly track and acknowledge your gift, please notify Assistant Director Michelle Clouse at (859) 221-2190 or michelle.clouse@centralmusicacademy.org with the following details:

  • Your name and address

  • The name of the stock and the number of shares being transferred

  • The date you initiated the transfer

Important considerations

The "Hold" Rule: To maximize your tax benefits, the stock must have been held for more than one year. If you have held the stock for less than a year, your deduction is typically limited to your "cost basis" (what you paid for it).

Do Not Sell First: To avoid capital gains tax, the shares must be transferred directly to CMA. If you sell the stock and donate the cash, you will still be liable for the tax on the gain.

Valuation: For tax purposes, the value of your gift is usually the average of the high and low trading prices on the day the stock is officially received in CMA’s account.

Disclaimer: Central Music Academy is not a tax or financial advisor. This webpage is for informational purposes only. Please consult with a qualified professional before making any financial decisions.