Appreciated Securities
Giving appreciated securities is a convenient way to support Rider University and Westminster Choir College while gaining tax advantages. You will 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.
How to Give Securities
When the security is held by your broker or commercial banker: Notify your broker that you want to give securities to Rider and send a letter to the broker and the Rider University Development Office, and also include the amount of shares, the name(s) of the stock(s), and state your intention for the gift. In the letter, direct your broker to transfer your gift into Rider's account. If the broker has any questions, he/she can call the Development Office at 609-896-5167 for further instructions.
To transfer stock to Rider's account, your broker can use the following:
Merrill Lynch Account # 87604E45
Rider University DTC # 8862
Mr. David Shea
Assistant Vice President
7 Roszel Road, 4th Floor
Princeton, NJ 08540
Telephone: 609-243-7932
Fax: 609-243-7825
If you have stock certificates in your possession please contact Ryan W. Baumuller, Director of Planned Giving, at: 609-896-5233 or [email protected].
Valuation of Your Securities
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 and received in Rider's account or hand delivered or mailed (date of the later postmark if not the same) in negotiable form to Rider.
The ceiling on deductibility of your gift of appreciated securities is 30 percent of gross income. Please consult your attorney or accountant for further information.
An Example of a Gift of Long-Term Appreciated Securities
| Securities Gift | Cash | |
|---|---|---|
| Market Value | $10,000 | $10,000 |
| Original Cost | - $2,000 | |
| Equals Capital Gain | $8,000 | |
| Income Tax Deduction | $10,000 | $10,000 |
| Income Tax Avoided (Percent used in reference to tax bracket) Example: $10,000 x 31% | $3,100 | $3,100 |
| Capital-Gain Tax Avoided $8,000 x 20% | + $1,600 | |
| Equals Total Tax Savings | $4,700 | $3,100 |
| Cost of $10,000 gift | $5,300 | $6,900 |
| Benefit to Rider University | $10,000 | $10,000 |
Short-term Appreciation
It is usually inadvisable to make a charitable gift of appreciated securities when your capital gain is short term (e.g., you have owned the securities 12 months or less). Please consult with your tax advisor to determine whether your donation is tax deductible in whole or in part.
Depreciated Securities
In general, it is not advisable to donate securities that are currently worth less than you paid for them. Please consult with your tax advisor to determine whether your donation is tax deductible in whole or in part.
Closely Held Stock
Making a gift to Rider 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 information at 609-896-5233.
Gifts of Property
Real Estate
Real estate can be contributed outright or through a life-income gift. You can contribute the entire interest in your property or a fraction of the interest. You can even contribute your personal residence but continue to reside there for the rest of your life. This gift of a future interest in your home lets you continue to enjoy your home without diminishing your standard of living and while obtaining a substantial current income tax charitable deduction. Since every gift involving real estate is unique, please contact Ryan W. Baumuller, Director of Planned Giving, at: 609-896-5233 or [email protected] to receive more information.
For More Information:
Director, Major & Planned Giving
rbaumuller [at] rider.edu
609-896-5233