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What to Give :: Publicly Held Securities
This is the right gift for you if you:
- Own appreciated marketable securities
- Have owned the securities for more than one year
- Wish to make an outright or life-income gift to Oberlin
This asset can be used to fund: Charitable Gift Annuities, Charitable Remainder Trusts, Pooled Income Fund gifts, and Charitable Lead Trusts.
This asset can be designated to: Area of Greatest Need; Scholarships; Professorships; Endowment; and the Conservatory.
An outright gift of appreciated marketable securities is one of the most attractive methods of realizing your charitable intentions toward Oberlin. Your gift of stocks, bonds, or other publicly traded securities entitles you to a charitable deduction equal to the full fair market value of the securities on the date of the gift, provided you have owned the securities for more than one year.
In addition, you do not incur capital gains tax on the transfer of such securities to Oberlin in the case of outright gifts. If you use appreciated marketable securities to fund a life-income gift, capital gains tax can be deferred or spread over the beneficiary’s life.
Please note that, as a general rule, you should not give Oberlin depreciated securities. It is more advantageous to you to sell such securities, take a loss on your income tax return, and donate the proceeds.
Taking the next step:
To learn more about gifts of marketable securities, please contact the Gift Planning staff at gift.planning@oberlin.edu or (440) 775-8599. We also encourage you to fill out the request for more information form so we may better assist you.
How To Give Marketable Securities to Oberlin
The most important thing to remember is to donate the stock itself, not the proceeds from the sale of the stock. It is also important to only donate securities that have appreciated in value. This can be accomplished two ways:
If Your Stock is Held in a Brokerage Account
Simply notify your broker of your intent to give stock to Oberlin College and ask him or her to contact the Office of Gift Planning at (440)-775-8599 or gift.planning@oberlin.edu for instructions on how to accomplish the transfer. (Do NOT instruct your broker to sell the stock.) Please note that instructions change over time, so please contact us for this information even if you have completed previous stock transfers with us.
With this method, Oberlin will value your gift at the mean price of the stock as traded on the date the stock is deposited into Oberlin’s account. This will generally be one or two days after you instruct your broker to make the transfer.
If You Hold a Valid Stock Certificate
Mail the unendorsed certificate to the Office of Gift Planning. Under separate cover, mail one stock power (download form – MSWord or PDF) signed in blank for each certificate given. A stock power can be obtained from Oberlin’s Office of Gift Planning or from a bank. Be sure your signature matches the name on the certificate exactly, and do not fill out any other information on the form. Your gift will be valued by Oberlin at the mean price of the stock as traded on the date of your last postmarked envelope.
If You Wish to Give Shares of a Mutual Fund
Gifts of mutual fund shares may also be given to the College. Most mutual fund companies have a form you must complete to effect the transfer, so you will need to contact your company and request directions on how to make such a gift. It is wise to inform the Office of Gift Planning of your plans so staff members can assist you in this process. Transferring mutual funds may take between two and three weeks to accomplish.
Example: Marketable Securities
Frederick Jones holds ABC stock that he purchased for $4,000 five years ago. The stock has a current value of $10,000. An outright gift of this stock generates a $10,000 charitable deduction, and Mr. Jones will not include the $6,000 of appreciation in his income as capital gain. If Mr. Jones is in a 30 percent income tax bracket and his gift is fully deductible, the value of the charitable deduction is $3,000 (30 percent of $10,000), which reduces the cost of his $10,000 gift to $7,000. At a 20 percent capital gains tax rate, he also avoids $1,200 (20 percent of $6,000) in capital gains tax, further reducing the cost of his gift to $5,800. Oberlin will credit Mr. Jones with a $10,000 gift.
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