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PROCEDURE FOR STOCK TRANSFERS

All stock transfers MUST be initiated using the following procedure. Otherwise, stock held more than one year would be subject to a 20% capital gains tax if you sell it yourself.

Community Foundation sells your stock in our brokerage account tax-free and credits your fund with the net proceeds. Community Foundation's policy is to sell stock immediately after the transfer is completed. Your tax deduction is based on the Fair Market Value of the stock at the time of transfer. Whether the stock price goes up or down when Community Foundation sells it only affects the amount of money available in your fund. After Community Foundation receives a check from the brokerage firm, Community Foundation will send you your acknowledgment letter for your tax records.

Because we follow up promptly with every stock transfer and sale, it is very important that you inform us in writing each time you initiate a stock transfer.

Here is the procedure we would like you to follow:

  1. Call Myrna Shields, Chief Operating Officer/Director of Administration at (949) 435-3490 to let her know you are going to do a stock transfer.

  2. Ask Myrna to give you the account number for the Community Foundation brokerage account that you plan to use. Example: You can transfer stock from your account at Merrill Lynch, UBS Financial, Charles Schwab, etc. to the Foundation's account at that same firm.

  3. If you are holding stock at a bank or trust company, we can give you DTC wiring instructions to transfer the stock directly into one of the Foundation's many brokerage accounts.
     
  4. Either mail a Letter of Authorization (or FAX the Letter of Authorization to (949) 435-3499) both to the broker you deal with and to our office at the same time. Use your brokerage firm's own Letter of Authorization form or write your own letter.
     
  5. Include the following information in the letter:
a.The date you wish to initiate the transfer
b.Number of shares you wish to transfer
c.Name of the stock
d.Your own account number at the brokerage firm
e.The Community Foundation's account number to which you are transferring stock
f.The name and phone number of your broker as a contact
g.Your signature (if stock is held in the name of you and your spouse, both signatures)