The most common form in which Lawrence receives contributions, and the one most helpful to the college, is the simple outright gift of cash or securities. In general, an outright gift qualifies for an immediate income tax deduction for the full fair market value of the property contributed, subject to allowable contribution ceilings (about which see below). In the case of gifts of appreciated securities held for more than one year, the donor will entirely avoid capital gains taxes on the contributed property.

Gifts of Cash
Gifts of cash usually take the form of a check made payable to Lawrence University and may be sent to the Development Office at the address listed under How to Make a Gift. Gifts can also be made instantly online.

Gifts of Securities
Gifts of long-term appreciated securities (those held more than a year) in publicly traded companies can be highly advantageous because the allowable deduction is based on the securities' market value, not the donor's cost, and no tax is imposed on the capital gain.

Gifts of publicly traded securities can be made either by delivering the certificates to the college (in person or by mail) or by transfer of ownership through a broker. Securities Transfer Instructions (PDF)

Shares Held in Certificate Form
If the donor holds certificates for the securities to be given, the simplest delivery method is typically to mail the shares to the college. In that case, a stock power of attorney ("stock power") with a signature guarantee is needed to transfer ownership. A stock power form may be obtained from the Lawrence Development Office, your broker, or an officer of your bank.

Place the unsigned certificates in one envelope along with a cover letter expressing your intention to give the securities to Lawrence University and indicating the purpose of the gift. In a separate envelope, place the signed stock power and a copy of your transmittal letter. Mail both envelopes at the same time, preferably by registered mail. This method ensures that the certificates are not negotiable until both envelopes are received.

Shares Held in a Brokerage Account
If securities held in a brokerage account are to be donated, you may instruct the broker to transfer specific holdings to the account of Lawrence University on the books of the brokerage house. The college maintains accounts with a number of national and regional brokerage firms for this purpose, and account numbers will be provided to you if you wish to make a gift in this fashion.

Alternatively, Lawrence can supply instructions for the electronic transfer of shares from the donor's account to Lawrence's preferred broker in Appleton.

Valuation
Whether you mail the shares, deliver them in person, or transfer them on the books of a brokerage firm, the date of transfer will determine the value of your gift for tax purposes. If you mail certificates to us, the transfer date will be the postmark date. If you deliver them to a staff member of the college, the transfer date will be the date that representative takes possession. If you work through a broker, the transfer will occur for tax purposes when the shares have been delivered to the college's account. In all these cases, the value of the gift will be the average of the high and low prices for the security on the transfer date, as quoted in the Wall Street Journal.

If you intend to contribute securities to the college, we ask that you please call the Development Office to alert the college and to expedite delivery and gift crediting. You may call 800-283-8320, Ext. 6517, or 920-832-6517.

Income Tax Deduction -- Gifts of Securities
The income tax deduction for gifts of securities held for more than one year is based on the fair market value of the gift on the day Lawrence assumes control of the shares and is limited to 30 percent of the donor's "contribution base" (usually equal to adjusted gross income) in the year of the gift. As with gifts of cash, any "excess" may be carried forward in as many as five additional years.

Gifts of Mutual Fund Shares
Gifts of mutual fund shares for funds invested in stocks and bonds are generally similar to gifts of securities. The donor transfers ownership to Lawrence and is entitled to an income tax deduction for the value of the shares on the date the college assumes control of them. The capital gain treatment of contributions of mutual fund shares is identical to that of individual securities. If the gift is outright, no capital gains tax is due. Gifts of mutual funds generally require Lawrence to establish an account with the company administering the fund, and for this reason extra time should be allowed for this kind of transfer.

For more information about outright gifts, contact the Office of Development at annual.giving@lawrence.edu, or 800-283-8320, Ext. 6517.