A charitable gift in the form of long-term appreciated securities generally provides two important tax advantages to the donor. First, the donor is entitled to a charitable income tax deduction based on the fair market value -- not the cost basis -- of the securities, provided that they have been owned for more than twelve months. Second, the donor avoids any potential tax on the capital gains and any sales commission that would be payable upon sale of the securities. Securities can be donated outright or transferred to fund gift-with-income plans, and can include publicly traded common stocks and bonds.
Example:A donor, who is in the 35% income tax bracket, owns securities currently valued at $50,000, that were purchased several years ago for $20,000. The donor contributes the securities to St. Lawrence and realizes a $50,000 charitable deduction that saves $17,500 in income taxes (35% of $50,000). In addition, the donor avoids the potential capital gains tax on the $30,000 paper profit for a further benefit of $4,500 (15% of $30,000).
The full fair market value of gifts of long-term, capital gains securities or real estate is deductible up to 30% of a donor's adjusted gross income. Any amount in excess of the 30% ceiling can be carried forward for five years.
If the securities have depreciated in value, it is not recommended that they be donated directly. It is generally to the donor's advantage to sell the securities to establish a tax deductible loss and then donate the cash proceeds to St. Lawrence.
Transferring Securities to St. Lawrence UniversityThe process to transfer securities is very easy. When securities are in the possession of the donor they should be delivered to St. Lawrence, without endorsement, by registered mail. A stock power bearing the donor's signature guaranteed by a commercial bank should be delivered separately. Please Note: The signature on the stock power form must exactly match the name(s) on the stock or bond certificate.
If the certificates are already endorsed, the stock power is not required. However, the certificates are therefore negotiable and should be hand-delivered or sent by insured mail.If you need a stock power form, please click here. Please note: The stock power form will open in a new window.
The gift value of the stock is the mean of the published high and low price as of the latest postmarked date or the date the securities are hand-delivered.
The second method to transfer securities is to transfer the securities through the DTC system to our account at SEI Private Trust Company. The following information should be supplied to the donor's broker (Note: these are not the transfer instructions for gift-with-income plans. Call 1-800-379-9541 for instructions for gifts to gift annuities, charitable trusts or the pooled life fund):
SEI Private Trust Company
One Freedom Valley Drive
Woodlands 2
Oaks, PA 19456DTC # 2039
Agent Bank # 94952
SLU Account # 15902-giftContact: Astrid Rau
Senior Operations Manager
Phone: (610) 676-1398
Fax: (484) 676-1398
Email: arau@seic.comWhen donating securities via DTC transfer, please inform the University directly with the name of the security, the number of shares, and the date of transfer, by calling Stephanie DeGray at 1-315-229-5582, or send a fax at 315-229-5620, or email sdegray@stlawu.edu.
The date of gift, and therefore the value, is determined per IRS regulations. The stock is valued as of the day it is received in the St. Lawrence gift account based on the average share price on that date, not the date transferred.