gifts of stock or mutual fund shares
Gifts of appreciated securities held for more than one year are
deductible at full fair market value. Stock given directly to charity is
exempt from capital gains taxation. The value of the gift for IRS and
other purposes is the mean between the high and the low on the date of
the gift. The “date of the gift” is the date that the stock is actually
transferred out of the donor’s account and into the account of Central
Methodist University, ideally confirmed in a letter.
METHOD #1 -- DTC transfer. Stock in street name can be
transferred electronically to CMU’s account. Ask your broker to transfer
[ # ] shares of [______] stock in care of Schwab Institutional, DTC
#0164, Code 40, to Central Methodist University Account #SL2184-8308.
Please mail or fax a letter confirming the details of your gift to:
Theresa M. Davis
Vice President for Advancement
Central Methodist University
411 Central Methodist Square
Fayette, MO 65248
FAX: (660) 248-6270
PHONE: (660) 248-6214
E-mail:
tdavis@centralmethodist.edu
METHOD #2 -- Stock Certificate. Send your stock certificate --
unsigned -- to the University with a note indicating your
gift intentions. In a separate envelope, mail a fully executed stock
power (with signature guaranteed, not notarized) to the college and a
third party release (with signature guaranteed by a notary and a
notary's seal). All gifts of securities must be accompanied by a letter
stating, “I ___________________, wish to contribute [ # ] shares of
[______________] stock to Central Methodist University.” This letter
must be signed by anyone having the authority to sell the shares. It is acceptable to fill in the blanks and
return this letter to the University.
TAX NOTE: To be exempt from capital gains tax, it is important that
you NOT sell the stock, but TRANSFER it to the account of the non-profit
institution, i.e., CMU. The University’s broker will then contact
the University to determine the further disposition of the stock.
CMU’s Tax Identification Number, should your broker need it, is 43-0654854.
If your brokerage firm needs written instructions to create an account
for Central Methodist University, ask your broker to call and supply CMU
with a fax number. A letter will be faxed to your broker approving the
creation of an account in the name of the University and welcoming your
proposed transfer of stock.
IMPORTANT - Please do remember to mail or fax the written details
of your gift to Theresa Davis.
THANK YOU!
