gifts of appreciated securities

A gift of appreciated securities to WSEM may be a more tax-wise gift for some donors than a cash gift. As stocks grow in value, they may appreciate substantially beyond the original investment. When stocks are sold, any growth above the original cost is considered a capital gain and is subject to federal capital gains taxes up to 20 percent (some states have capital gains tax as well).

Benefits of gifting appreciated securities

  • You receive gift credit and an immediate tax deduction for the fair market value of the security on the date of transfer, no matter what you originally paid for them.
  • By gifting WSEM appreciated securities that have been held by at least a year and a day, you can avoid capital gains tax and receive an income deduction for the fair market value of the stock at the time of the gift.
  • You can direct your gift to a specific fund or purpose.
  • You can make the gift annually or as a one-time contribution.
  • Your gift can be used to establish a life income gift to benefit WSEM.
  • Your gift can be used to create a permanent fund of WSEM.

How to Make a Gift of Appreciated Securities
Electronic Transfer: Your broker can electronically transfer your securities to us. This request must be made in writing using this ELECTRONIC TRANSFER OF STOCK AUTHORIZATION FORM. Upon receipt of this form, our broker will advise us of your gift so that we may recognize your generosity and acknowledge your donation.

Physical Delivery: You may deliver securities to us in person, by registered mail, or by courier. If they are registered in your name, you must provide an IRREVOCABLE STOCK/BOND POWER FORM. To ensure that we properly acknowledge your gift, please notify us in advance with our GIFT NOTIFICATION FORM.

Contact Us
The Vice President of Advancement is available to discuss the best way for you to make a gift of appreciated securities, either through electronic transfer of your shares or via a physical stock certificate. For further information, please contact the Advancement Department at (216) 651-2037.

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