Frequently Asked Questions
What is the "legal" value of a stock
gift?
The "legal" value of a stock gift is the mean value
of the stock on the date of the gift. The date of the gift differs
depending on how the university receives the shares. If the donor
mails in a stock certificate, the gift date is the latter of the
two postmarks for the stock certificate and the stock power. If
the shares are DTC'ed, it's the date DTC and NOT THE DATE THE DONOR
TOLD THEIR BROKER TO TRANSER THE GIFT. For the gift to be consummated,
the stock must be registered in the university's name or in the
control of their legal agents.
What are the advantages for gifting appreciated
stock versus cash?
If the stock is transferred in-kind, "DTC'ed", to the
university gift account, within certain limits under the IRS, the
capital gain on the sale of the gifted stock is not taxable, but
the donor may receive full fair market value of the gift as a tax
deduction. To be certain, please check with your tax advisor, tax
attorney or financial planner. There are limits based on a donor's
annual income.
Are there tax advantages to donating "E"
of "EE" government bonds?
No. There are no tax advantages. It's best for a donor to redeem
the "E" or "EE" bonds themselves and to gift
the proceeds to the university. However, tax must be paid on the
total return.
