Gifts of long-term appreciated stock or 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. 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.
+ Shares Held in Certificate Form
If the donor holds certificates for the securities to be given, the simplest delivery method is to mail them to the college. We’ll need a signed, stock power of attorney form ("stock power") to transfer ownership. You can receive the form by contacting the Lawrence Development Office, your broker, or an officer at your bank.
Put the unsigned certificates in one envelope with a cover letter expressing your intention to give the securities to Lawrence, indicating the purpose of the gift. Put the signed stock power form and a copy of your transmittal letter in a separate envelope and mail both envelopes at the same time, preferably by registered mail. (This 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. Securities Transfer Instructions
+ 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.
+ Income Tax Deduction
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.
