Gifts of Securities

Gifts of Securities

Giving appreciated stock has been a popular method of making charitable contributions to CI. Tax–wise donors consider a gift of appreciated stock because of their significant tax benefits. Generally, donors of appreciated stock can deduct the full fair market value of the asset donated (not the cost basis), plus avoid paying all capital gains tax on the sale. The process is simple and requires little effort.

If you are interested in pursuing this type of gift further, please contact Nichole Ipach, 805–437–8893 or nichole.ipach@csuci.edu.

Here are some important considerations when giving securities:

Methods to Provide Your Stock Gift

Depository Trust Company

(DTC) – This method is used when shares are held with a broker or in a trust account at a bank. DTC transfers should be coordinated through the CI Foundation so that there is adequate follow–up and review throughout the process. Generally, the process involves notifying the broker or bank in writing. The notification should outline your intent so that your investment representative knows exactly how many shares and what stock you are interested in donating.

Mail

The owner of the stock certificate must mail two separate documents to CI Foundation. The actual certificate should be mailed, unsigned. Additionally, an Irrevocable Stock and Bond Power (available from your broker) must be completed and mailed in a separate envelope. We recommend sending these items by certified mail to: CI Foundation, One University Drive, Camarillo, CA 93012. We will notify you immediately upon receipt of your certificate.

Hand Delivery

A certificate may be delivered to CI Foundation in person. We are located in Solano Hall. The owner of the stock certificate should deliver the unendorsed certificate along with an Irrevocable Stock and Bond Power form (available from your broker). Please call for directions and parking information (805) 437–3271.

Registration through Transfer Agent

If it is your preference to re–register the certificate in the name of CI Foundation, you ay find that the process will take the greatest amount of time to accomplish. Please notify us at the CI Foundation so that we are able to match the certificate with the correct donor when the certificate arrives. The certificate should be registered as follows:

California State University Channel Islands Foundation
One University Drive
Camarillo, CA 93012

The transfer agent will require a tax identification number. If you would like to pursue this option, please notify Nichole Ipach, 805–437–8893 or nichole.ipach@csuci.edu.

The Determination of the Date of your Gift

The IRS determines the date of gift as the date the Foundation has complete control over the asset.

DTC transfer

The date of gift is determined by the date the securities are deposited into a CI Foundation account. (Please note that this MAY NOT coincide with the date of the instructions to make the gift.)

Journal Entry

This occurs when a donor and CI Foundation have accounts with the same broker or bank. The date of gift is determined by the date the securities are deposited into a CI Foundation account (please note that this MAY NOT coincide with the date of the instructions to make the gift).

Mail

The date of the gift is determined by the postmark on the latter of the two envelopes containing the certificate of Irrevocable Stock/Bond Power. Note that it is the responsibility of the donor to document the date of gift for IRS purposes. We recommend that you obtain a proof of mailing for your records.

Hand Delivery

The date of the gift is the date when both the certificate and the Irrevocable Stock/Bond Power are received by CI Foundation.

Your Gift Valuation

For publicly traded securities, the gift value is determined by the average of the high and low market prices on the date of gift. The valuation assigned by the Foundation is for internal gift recognition purposes only. It is the responsibility of the donor to determine the value for tax purposes.

You should always consult your legal or tax counsel on the deductibility of your charitable contributions.

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