Stocks, Bequests and Wills

Bequests and Wills:

Many people inquire about leaving a legacy to support WCPE Radio. Here is the information about our corporate status and our tax exempt status.

The corporate name of WCPE is "Educational Information Corporation", a non-profit 501(c)(3) organization chartered in North Carolina, having its principal office at 1928 Chalks Road, Wake Forest, N.C. 27587 -- our studio location.

Contributions, donations, gifts, bequests, legacies, devices, or transfers made to the Corporation will be deductible for North Carolina Income Tax purposes, by individual donors as provided in Section 105-147(15), and by corporate donors as provided in Section 105-130.9(1) of the General Statutes. The State ID number is 92-14083-26.

Moreover, contributions, donations, gifts, bequests, legacies, devices, or transfers made to the Corporation will be deductible for Federal Gift, Estate, or Income Tax purposes as set forth under section 170, 2055, 2106, and 2522 of the Internal Revenue Code of 1954 and the several amendments thereto. The Federal Exemption Number is XJ56 106 1859.

If for any reason you need photocopies of the actual documents, please contact us.

Stock Donation:

WCPE can accept stock and bond donations. Because we are a 501(c)(3) organization, such gifts are deductible. Our Federal tax ID number is XJ56-106-1859 and our State ID number is 92-14083-26.

Here's how to proceed:

1. Send a letter to your broker specifying the shares of securities you wish be transferred to our account; ask that the transfer document be sent to WCPE and we can forward it to our financial representative.
   
   
2. If you have individual certificates for the shares you wish to donate, you may simply sign them over to us and mail them.
   
   
3. If you or your stock broker or financial representative wish to transfer the items another way, and that is to your liking, that is fine with us. There are many ways to do this.

One brokerage account is with Edward D. Jones and Company. Our ID is 299-00337-1-0-460. The DTC No. is 0057. We work with Mr. Matt Vukmer at 8111 Creedmoor Rd., Suite 104, Raleigh, NC 27613. His phone number is (919) 518-1012.

WCPE also has a Merrill Lynch account if that would be more convenient for you. Our ID is 778-04E26 under our Corporate name, Educational Information Corporation. The DTC No. is 5198. We work with Ms. Betty Newberry, at PO Box 211, Raleigh, NC 27602. Her phone number is (919)829-2043.

Another option is Davenport & Company, LLC. WCPE Gift Account 8643-3565. The DTC #0715; 901 E. Cary Street, Richmond, VA 23219. We work with Mr. Kemp Reece at 3605 Glenwood Ave, Suite 390, Raleigh, NC 27612. His phone number is (877) 505-6550 or kreece@investdavenport.com.

How ever you choose to proceed, keep a record of the transaction, and remember that you should receive a verification certificate from us about 45 to 60 days after you initiate the transfer process. If you don't, please contact us; sometimes the tracking process doesn't give us all the information we need to acknowledge your gift.

Also remember that many times your employer will count the value of the donation in their Matching Gift program.

Our Federal ID Number is XJ56-106-1859; the State Number is 92-14083-26. We are a North Carolina non-profit corporation: the legal name is Educational Information Corporation. Remember that their employer may count the value of the donation towards a matching gift program.

Tax Loss Sales to Benefit Non-Profit Organizations: The Basics

Fundamentally, your account is either tax-exempt (IRA, 401(k), 403(b), etc.) or a "regular" or taxable account. (However, if it's a tax-exempt account or "pension plan", none of this applies.)

1. Stocks or mutual funds purchased in the last year or two may be worth less now than you paid.
   
   
2. If stocks or bonds or mutual funds are sold for less than their "basis" -- their original cost plus additional re-investments, that loss can offset or "absorb" other capital gains, which eliminates the capital gains tax otherwise payable on those gains.
   
   
3. If you own mutual funds and don't think you have capital gains, don't forget that even if you didn't sell anything, your mutual funds may pay you a taxable capital gains "distribution." But you won't find out until you get the fund's 1099 in late January, 2002. Those "involuntary" capital gains from mutual funds are as taxable as any other capital gain.
   
   
4. Even if you don't think you have any capital gains to use losses against, you can still benefit from taking losses in your portfolio. You can take up to $3000 of realized capital losses each year to reduce your "ordinary income" and therefore the tax on that income. So "capital" losses become deductible against "ordinary" income -- an "extra-ordinary" benefit that will vanish if you just sit still amid your unrealized losses.

   If you have more than $3000 of realized losses to deduct against your ordinary income, you just carry them forward indefinitely. Therefore you can use this year's losses to offset next year's gains, and if you still have net losses after applying the losses you carried over to your realized gains, you get to deduct another $3000 and carry the rest forward again. And so on.
   
   

5. In order to take the "tax loss," you must sell the stock or mutual fund before the end of the tax year.
   
   
6. You may have heard that if you take a capital loss, you cannot immediately re-buy that stock or fund. That is correct -- you cannot must wait 31 days, but you are permitted to buy a very similar stock or fund. Just don't buy the same one for 31 days. Sell Vanguard S&P 500 for a loss; buy T. Rowe Price's Equity Index 500.

Talking Points

• Even though you may not have big "gains" in your investments this year, don't add to your "loss" by paying unnecessary taxes. Investments sold for a loss before year's end may reduce your taxable income by up to $3000. You can save taxes and find a way to make a special year-end gift to WCPE that is also deductible itself. Consult with your tax professional and harvest that investment loss before the year disappears along with your deduction.
  
  
• Even if you don't think you'll owe capital gains taxes this year, your mutual funds may have a surprise for you -- capital gains distributions that you may not find out about until the end of January 2002 when it's too late to avoid them -- and their taxes. Consult with your tax professional right away and take losses to cover those potential gains distributions. You'll save enough in taxes to make a special year-end gift to WCPE, which will get you another tax deduction as well.
  
  
• $3000 is the amount of investment loss that you may be eligible to take against your other income, potentially saving you over $1000 if you're in the top brackets. That tax reduction opportunity will disappear for 2001 on December 31st, but if you act quickly, you can save taxes and find a way to make a special year-end gift to WCPE -- giving you another deduction and more tax savings. Check with your tax advisor as soon as possible before this deduction slips away.

Thank you to Bill Dix at Fortune Management Group, of Raleigh, NC

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