Gifts of Securities
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.
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.
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
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.
