Gifts of securities have a number of advantages to the donor and are an excellent way to support Missouri State. You can contribute long-term appreciated securities and get a double income tax benefit. First you may be able to receive a deduction for the full, present, fair market value of the assets instead of the lower cost basis and you may completely avoid capital gain tax on the appreciation of the assets. The ceiling on deductibility is generally 30 percent of adjusted gross income, with a five year carry-over for any part of the gift that exceeds the ceiling.
Dates of Delivery
A charitable gift is considered to have been made on the "date of delivery." This is important in determining the tax year in which the gift is deductible, the value of the gift, and whether the gift is considered long-term or short-term property.
- Hand delivered — The date the securities are physically handed over to the Foundation.
- Mailed securities — The postmark date serves as the date of delivery. When mailing securities, it is wise to mail the certificate and stock power in separate envelopes.
- Reissued — If securities are delivered to the donor's bank, broker or issuing corporation instructing them to reissue them in the name of the Missouri State Foundation, the delivery date is the date on the new stock certificate bearing the Foundation's name.
- Electronic transfer — The date the stock is entered on the corporate books in the Foundation account.
All hand delivered and mailed securities must have a completed stock power with medallion guarantee before the delivery of the securities is complete. Please attach a letter, signed by all parties listed on the security, indicating that you are making a charitable gift of the securities to the Foundation, including how you wish to designate your gift.
Perhaps the easiest way to make a gift of securities is by electronic transfer. Generally, this avoids delays and problems with reissuing, mailing, stock powers and medallion signature guarantees. Electronic transfer may be completed by:
- If you have an account with Ameriprise Financial; Bank of America/Merrill Lynch; Benjamin F. Edwards; Edward Jones; Raymond James; Charles Schwab; Stifel, Nicholaus and Company; or Wells Fargo, simply request (usually in writing) that your broker transfer the stock to the Missouri State Foundation account. Please contact us for our current Missouri State University account number with each of these firms.
- If your account is with another financial investment firm or bank, you can request the electronic transfer to the Missouri State University Foundation through Merrill Lynch Wealth Management. Please contact our office for that account information.
Please notify the Foundation in advance of the transfer in order to designate your gift and so we may advise our broker of the pending transfer.
This information is not intended to provide legal or financial advice. For legal or financial advice, please consult with your attorney or financial advisor.