Utilizing securities that have appreciated in value to fund charitable gifts is one of the most effective means of benefiting charity while obtaining considerable income tax advantages. If an individual sells a stock or bond that has increased in value, he will be subject to a tax on that capital gain. Because a public charity is not subject to income taxation, it can sell either of those securities without being subject to the capital gains tax.
How does one transfer stock to charity? It depends on how you currently hold the stock.
If you hold the stock certificate, the gift can be completed two ways.
By Mail: The stock certificate, along with a letter of instruction regarding the purpose for which the gift is to be used, may be mailed to the following address:Southern Methodist University
Office of Gift Planning
P.O. Box 750402
Dallas, TX 75275-0402
It is recommended that you use registered or certified mail to send the certificate. In a separate envelope, please mail a signed Stock or Bond Power. The Stock or Bond Power can be obtained from your broker or from the Office of Gift Planning. Please contact the Office of Gift Planning at 214-768-1911, or email@example.com for the form..
By Hand Delivery: The stock certificate, along with a letter of instruction regarding the purpose for which the gift is to be used, may be delivered by hand to the following address:Southern Methodist University
Office of Gift Planning
6425 Boaz Lane, suite 302
Dallas, Texas 75205
The stock certificate also must be accompanied by a Stock or Bond Power, available from your broker or the Office of Gift Planning.
If the stock is held in a brokerage account, the gift can be transferred electronically.
Please notify the Office of Gift Planning, when transferring assets or cash. They may be reached at 214-768-1911, or firstname.lastname@example.org.
To transfer securities to SMU, please use the following transfer instructions:State Street Global Management
Southern Methodist University (Gift Securities)
Account # AB2037174
DTC # 0226Contact: SMU Investments Office
6116 N. Central Expressway, Suite 1210, Dallas, Texas 75206
Attention: Weston Hebert
Phone: 214-768-2403 or 214-768-2802
NOTE: Please ask your broker to include the donor name when submitting transfer instructions.
To transfer U.S. Treasuries to SMU, please use the following transfer instructions:Chase Manhattan Bank
ABA # 0210-0002-1
Account # 066196-221
State Street Global Management
FCC: Southern Methodist University (Gift Securities) #AB2037174
To transfer cash to SMU, please utilize the following transfer instructions (US only, if this is International, please contact the Office of Gift Planning for additional instructions)Bank of America
SMU Gift Account
Account # 375-161-9802
Routing # for ACH: 111000012
Routing # for WIRE: 026009593
Determining the Value of the Gift
In addition to avoiding the capital gains tax, a charitable gift of securities held for more than one year entitles the donor to an income tax deduction equal to the value of the security at the time it is given to charity. However, determining the value of the gift to charity when the gift is made with securities is not as simple as it would be if the gift were made with cash. The Internal Revenue Service Regulations state that the value of the gift for income tax purposes is determined on the date the gift is completed and is equal to the mean of the high and low of the values traded on that date.
Generally, the gift is complete when it has been irrevocably transferred by the donor and comes under SMU’s custody and control. When mailed, the gift is complete when it is postmarked. When hand delivered, it is complete when received by an SMU representative. When transferred electronically, the gift is complete when it arrives into SMU’s brokerage account.
Gifts of Mutual Funds
The process of giving mutual fund shares can vary by company, so please contact the Office of Gift Planning at 214-768-1911, or email@example.com for specific instructions.