Gifts of Publicly Traded Securities

Other than cash, securities (stock shares, bonds, mutual funds) are the most popular asset for making charitable gifts to Daemen College and carry several benefits for the donor.  If your securities have appreciated in value, you may avoid capital gains tax that would apply to the appreciation when you sell the securities.  You may also earn a charitable income tax deduction for the full fair market value of the securities.  With the tax savings, the cost of your gift to Daemen may be much less than the actual value of the gift.  These tax savings make a gift of appreciated securities preferable to a gift of cash.

 

 

If you use the tax savings to repurchase additional shares you will have a higher cost basis on the new shares.  This will result in less taxable capital gain when you eventually sell these shares.

 

 

If you hold securities that have declined in value, it is best to sell the securities and receive an income tax deduction for the capital loss.  You could then give the income tax savings to Daemen and receive an income tax charitable deduction.

 

To make a gift of securities that are held in street name (electronically in your brokerage or bank), contact the Office of External Relations for information that your account representative will need to process the transfer.  Give clear instructions to transfer, not sell, the securities.  Otherwise, you may end up paying capital gains tax that you expected to avoid.

 

 

If you are holding the securities as certificates, get a stock power from your account representative.  Sign the stock power, but do not enter other information or dates.  Daemen staff will enter the information based on the date we receive the documents.  Then mail the certificates in a separate envelope to the Office of External Relations.

 

 

Gifts transferred electronically are complete on the date Daemen receives the transfer.  Gifts transferred by mail are complete on the postmark date.  The recorded gift value of a publicly traded security is the average of the high and low market prices on the official gift date.

 

The information in the Web site is not intended as legal advice.  For legal advice, please consult an attorney.

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