ABI Endowment Accepts Stock Donation

The ABI Endowment has now accepted its first stock donation. Richard P. Carmody of Adams and Reese LLP, of Birmingham, Ala., donated 25 shares of IBM in June. Richard's generous donation of appreciated stock is a milestone in the growth of the ABI Endowment fund. According to Richard, a member of ABI since 1985, "using appreciated securities to fulfill my pledge is advantageous for the ABI and me."

In Richard's case, the stock was a gift from a relative. As a result, he acquired the stock with a stepped-up basis. As a taxpayer who itemizes, when he donated the stock to ABI he received the opportunity to take a charitable deduction for the full amount of the fair market value of the stock on the date donated. Assuming that the donation is at or above his basis, the benefit that Richard receives is the full value of his stock on that date. ABI then receives the cash value of the stock on the date it is transferred—truly a win-win situation.

As Richard indicated, the prospect of donating appreciated stock to the ABI Endowment presented a useful opportunity to benefit his family. In addition, as the IRS has indicated in its own year-end guidance on donations to charities, "we want people to be focused on helping these worthy groups, rather than worrying about tax issues," on donations of appreciated stock.

We hope that other ABI members consider the value of ABI Endowment efforts in their giving plan. ABI does not provide tax advice and we urge you to consult your tax advisor regarding the effect of donations on your individual tax situation.

First ABI Endowment Golf Tournament

In another first, ABI will be co-hosting in conjunction with the New York Institute of Credit a Sept. 11, 2006, tennis and golf tournament at the Montammy Golf Club in Alpine, N.J. ABI also plans to offer continuing legal education at this event. As the event is being held on the fifth anniversary of 9/11, proceeds will benefit a 9/11 fund as well as the ABI Endowment.

To make a donation or for further information on the ABI Endowment, please contact Ann vom Eigen, Deputy Executive Director and General Counsel, at (703) 739-0800 ext 125 or [email protected].