Giving appreciated securities is a convenient way to support Westminster while gaining tax advantages. You receive an income tax deduction for the full market value of the stock on the date of the gift, provided you have owned the securities for more than 12 months. Most donors avoid liability for capital gains tax otherwise due on the sale of securities.
How To Give Securities
When the security is in your name and in your possession:
- Obtain a stock/bond power from your broker, banker, or contact Westminster's development office.
- Sign the stock/bondpower and have your signature guaranteed by your commercial banker, but do not fill in anything else. Sign exactly as your name appears on the certificate. If the security is jointly owned, both owners must sign the stock/bond power.
- Mail the signed stock power in a separate envelope to the address below along with a copy of your letter of transmittal.
- Mail unendorsed certificates by first class or registered mail with a letter of transmittal to the office of planned giving at Rider University.
- If the certificates are already endorsed, send them by insured mail or deliver them to the office of planned giving.
The gift value of the securities is determined by calculating the mean of their high and low price on the date that the securities and power are hand delivered or mailed (date of later postmark if not the same) in negotiable form to Rider University.
When the security is held by your broker or commercial banker:
Notify your broker by letter that you want to give securities to Westminster Choir College of Rider University and send a copy of the letter to Christopher Feltham at Westminster. In the letter, direct your broker to call Westminster's development office at 609-921-3200 for further instructions. To transfer stock to Westminster Choir College of Rider University's accounts, your broker can use the following:
Merrill Lynch account #876-04E45 Rider University DTC#5198
David Shea, account representative
7 Roszel Road, 4th Floor
Princeton, NJ 08540
The gift value of securities is the mean of the high and low prices on the date that the securities are transferred by your broker into an account in the name of Westminster Choir College of Rider University.
It is usually inadvisable to make a charitable gift of appreciated securities when your capital gain is short term (i.e., you have owned the securities 12 months or less). Such a gift is deductible only in the amount of its cost basis--not its market value.
In general, it is not advisable to donate securities that are currently worth less than you paid for them. If the sale of stocks or bonds would result in a tax deductible loss, it is usually to your advantage to sell them to establish a tax loss and then donate the proceeds to Westminster Choir College of Rider University.
Giving Securities While Retaining Life Income
In addition to giving securities as outright gifts, you may make a retained life income gift to Westminster Choir College and receive income during your lifetime and/or the lifetime of a designated beneficiary such as your spouse. The tax advantages vary according to the plan you choose. For more information, see Receive Payment from a Life Income Gift. Closely Held or Restricted Stock
Making a gift to Westminster Choir College of Rider University of closely held or restricted stock may allow you to gain immediate cash benefits through tax savings. Because closely held or restricted stock requires special handling, please contact the development office for more information at 609-921-3200.
Limits on Deductibility
The ceiling on deductibility of your gift of appreciated securities is 30% of gross income. However, usually you may carry forward any excess as a deduction for as many as five years. Please consult your attorney or accountant for further information.