Giving shares of appreciated stock, bonds, mutual funds, and other securities can be an excellent way to make a gift to WDAV.
When you donate securities in lieu of cash, you do not pay any capital gains tax on the appreciation in the securities, while you receive a deduction for their full market value on the date of your gift.
Before making a securities gift of any kind, PLEASE CONTACT WDAV FIRST. We can provide the necessary information to make sure the transaction is handled to your specifications and satisfaction, and you receive proper credit and acknowledgment for it. Please contact Rodger Clark in the WDAV Development Office at 704-894-2981 or firstname.lastname@example.org.
If you need to be sure that your gift takes place before the end of the calendar year, call before December 1 to make gifts of stock or bond certificates or mutual fund shares. Call by December 15 if your stock gift is in a brokerage account and you intend to transfer it electronically.
Don't wait to be sure that you want to make a securities gift, or until you've decided on a certain number of shares. The transfer arrangements can be made ahead of time, so you can make the gift at your convenience.
Why should I call before making my securities gift?
Calling ahead -- and calling early -- helps our staff:
- advise you on the best method of transfer
- make sure that your gift -- and your tax deduction -- is completed in the appropriate tax year; (Please Note: call before December 1 for stock or bond certificates and mutual fund shares, or by December 15 if your stock is in a brokerage account and you intend to transfer it electronically.)
- acknowledge your generosity in a timely manner.
What if I want to make my gift through a broker?
It is almost always quicker and safer to make gifts of securities through a broker, using electronic transfer, than it is to send certificates and other documents by mail. Start by speaking to your broker. Find out what form of written authorization is necessary from you before the brokerage will release your securities. Make sure your broker knows NOT to sell the securities and send WDAV the cash proceeds, but to transfer them "in kind." Then either contact WDAV yourself for electronic transfer instructions, or have your broker do so.
If you have a brokerage account, you can deposit paper stock or bond certificates with your broker and direct him or her to contact Rodger Clark, director of development for WDAV, at 704-894-2981 for electronic transfer instructions.
What if I don't have a broker?
If you don't have a broker you wish to use for this transaction, you can mail the unsigned certificates to WDAV, and in a separate envelope mail WDAV a stock power. This simple document requires your signature, and must be guaranteed on the power by a bank or brokerage house officer. Form stock powers are commonly available at your bank or brokerage, and can be mailed, faxed, or emailed to you by WDAV. If you have a certificate for a larger number of shares than you wish to give, simply send the certificate you have, and indicate on the power the number of them you are giving; we will have a new certificate for the balance reissued in your name and returned to you.
Can I give mutual fund shares?
It is possible and often advantageous to give shares in non-IRA mutual fund accounts, but it is generally not as straightforward as giving individual companies' stocks or bonds. This is because there is no public market or clearinghouse for the majority of mutual funds' shares, and transfer procedures -- and the time needed to complete them -- vary widely from company to company.
In order to complete a gift of mutual funds:
- Davidson College's Business Office must generally open an account with the mutual fund company and supply a variety of documents.
- The donor must direct the mutual fund company, in writing, that a transfer of share be made to Davidson's newly established account.
Call early, and we'll do our best to comply promptly with your mutual fund company's particular transfer procedures. If you have further questions about giving securities to Davidson, please contact Rodger Clark in the Development office at WDAV at email@example.com or 704-894-2981.