Donating Stocks And Securities
Gifts of appreciated securities often provide significant tax benefit for the donor. Contributions of appreciated stock held for more than a year are generally deductible at market value, regardless of what you paid for them. Accordingly, the capital gains tax is avoided. Please consult with your tax advisors for specific tax advice when giving securities.
Securities Held in Brokerage or Bank Accounts
If your securities are held in a brokerage account, most brokers will require written instructions authorizing the transfer to the FOAC. You will find the information you will need to send to your broker here, including information about the FOAC's brokerage account. After receiving a letter, your broker will be able to transfer the securities directly to the FOAC's account. Some brokers require this letter to be medallion signature-guaranteed by an eligible guarantor institution (bank, stock brokers, savings and loan associations and credit unions) with membership in an approved signature guarantee and medallion program. Please check with your broker for special requirements. The securities transfer information page also provides a means to alert the FOAC of your intended gift, which will expedite gift processing.
Securities Held in Certificate Form
If your securities are held in certificate form, a transfer of the physical stock certificate will be required. Please send the certificate(s) without any endorsement or assignment via registered mail to the FOAC's Director of Gift Securities Accounting:
Michael P. Gara
First Vice President – Investments (UBS)
100 Overlook Center, Suite 400
Princeton, NJ 08540
Phone: (609) 951-5611
Fax: (855) 570-1645
Under separate cover via regular mail, send a stock power for each certificate, signed exactly as the name(s) appear(s) on each of the certificates, and dated. The stock power should transfer the securities to The Friends of Aiglon College (tax ID 13-2979554) and be signature guaranteed by a bank or brokerage house.
Mutual fund units cannot be electronically transferred via DTC. The FOAC may or may not be able to accept the gift based on the fund company and/or where the mutual funds are held. If you wish to make a gift of mutual funds, please contact Gift Processing at (609) 951-5611 to discuss further.
The gift date for securities sent to us via DTC is the date the securities are deposited into our account. The gift date for physical securities is determined by the postmark on the envelope used to mail the securities. For hand delivery of securities, the gift date is the date the securities are turned over to the designated FOAC representative. The gift date for mutual fund units is the date they are deposited into an FOAC account.
The value of marketable securities is calculated by averaging the high and low quoted selling prices for the stock as of the gift valuation date. The value of a bond gift is calculated by averaging the bid and ask prices for the bond as of the gift valuation date. The value of a mutual fund gift is calculated using the Net Asset Value (NAV) for the fund as of the gift valuation date. The gift value of closely held or restricted stock will be valued at the fair market value placed on the stock by a qualified independent appraiser.
(Source: IRS Publication 561)
Acknowledgement and Gift Processing
When The FOAC receives a gift of securities and matches that gift to the donor, it will send a gift receipt verifying the nature of the gift, the gift valuation date and the gift valuation amount. Neither gains nor losses realized by the institution’s sale of the securities after their receipt, nor brokerage fees or other expenses of the transactions are included in the gift value. If the stock transfer is related to an open pledge, the pledge balance will be reduced by the gift value of the stock gift. Generally, the gift value of a stock transfer will be directed to the donor designated purpose.