Mutual Funds

Make a Greater Impact with Mutual Funds

Donating mutual funds is a tax-efficient way to support the BHI Foundation. When you gift appreciated shares, you may avoid capital gains taxes and receive a charitable deduction, all while advancing our mission.

How to Get Started

Important Legal Information

  • Legal name
    BHI Foundation, Inc
  • Address
    8330 Allison Pointe Trail, Indianapolis, IN 46250
  • Tax ID
    (EIN) 35-1680796
  • The BHI Foundation is a 509(a)(3) supporting organization; contributions are tax-deductible under U.S. and Indiana law.

How It Works

  • You transfer ownership of mutual fund shares (domestic equities, bonds, or balanced funds) directly to the BHI Foundation.
  • If the shares have appreciated (they cost you less than current value), you can avoid paying capital gains tax on the appreciation.
  • You generally receive a charitable deduction equal to the fair market value of the shares at the time of transfer (subject to IRS limits).
  • The Foundation can sell the shares immediately (or over time), turning them into usable funds for programs and care.

Key Details for Your Advisors

  • Use the exact legal name, address, and EIN of the BHI Foundation to ensure your gift is properly recorded.
  • Notify your broker and the BHI Foundation in writing that the gift is intended for charitable purposes.
  • If donating shares with losses, consult your financial advisor, sometimes it may be better to sell and donate cash.
  • The gift should comply with IRS rules; it’s wise to obtain a brokerage or fund statement showing value on the date of transfer.

The Benefits of Giving Mutual Funds

  • Tax advantages: avoid capital gains taxes and take a deduction for the full value.
  • Maximize your impact: more of your gift goes to BHI instead of taxes.
  • Simplicity: many brokerages support direct transfers of mutual fund shares.
  • Flexibility: you can gift part or all of a mutual fund holding, or designate it to a particular community or program.

How to Get Started

If you’re considering donating mutual funds and want to explore whether it’s right for you, we’re here to help:

Major & Planned Giving Office

765-543-3289

info@bhifoundation.org

How to Get Started

  1. Contact your brokerage or mutual fund company and request a transfer of shares (sometimes called an “in-kind gift” or “security donation”).
  2. Provide them with the BHI Foundation’s account details (legal name, account number, etc.).
  3. Inform the BHI Foundation (e.g. Major Gifts office) that the gift is coming, so we can track and acknowledge it properly.
  4. Confirm the date and value of shares transferred for tax reporting.

We are here to help. Please reach out to:

Major & Planned Giving Office

765-543-3289

info@bhifoundation.org

Frequently Asked Questions

Yes, but if they are short-term holdings, your capital gains deduction may be less favorable. Long-term holdings often yield better tax benefit.

No, transferring shares directly as an in-kind donation is usually better from a tax perspective, because it avoids triggering capital gains on your end.

Yes, you can instruct us to apply the gift to benevolent care, enrichment, employee support, or a specific campus.

Absolutely, BHI Foundation will provide an acknowledgment including the number of shares and the date of transfer, which you’ll need for your tax records.

The charitable deduction is based on the value on the date of transfer, not what happens afterward.

Yes! When you donate charitable mutual funds, you may be eligible for certain tax deductibles or savings. If you donate non-cash assets like mutual funds to charity, you may not need to pay capital gains tax and may be eligible for an income tax deduction.

The charity you give to, deduction limits, and other factors impact whether you get a tax deduction and, if you are eligible, how much you receive. Because of this, it can be useful to understand exactly how your donation impacts your taxes.

A professional like an accountant or financial advisor can help you with your tax return or overall financial plan, which may be helpful if you are unsure about the tax implications of your gift.