How to make a Gift of Securities
Advantages of Giving Appreciated Stock and Mutual Funds Include:
- Avoidance of capital gains tax. Any gain in the stock/mutual fund is taxable if you sell it yourself, but not if you give it to Bradley.
- A charitable deduction for federal income tax purposes based on the full fair market value of the stock/mutual fund on the date the gift is made, assuming it has been held long term-one year or more.
- Gift credit from Bradley based on the full fair market value of the stock/mutual fund, not its cost basis.
- In matters of personal tax consideration, donors should consult their financial advisors.
How To Do It – Gifts of Stock
Of the several ways to give stock to Bradley, the best method may be determined by whether you actually hold the stock certificate.
Method 1 – Electronic Transfers
Stock should be transferred to DTC #0226, with further credit to Bradley University, account #091-148288. This should be immediately followed (or preceded) by a telephone call to Beverly Walker of PNC Investments at 309-655-5455 or 800-322-2212 to inform her that the transfer is a gift to Bradley University. She will make certain the gift is received and properly credited.
Method 2 – Stock Certificate
If gifting physical certificates to Bradley University: Please obtain a separate stock power and have your “signature guaranteed” on the stock power. The stock power looks similar to the back of a stock certificate. A stock power and a “signature guarantee” can normally be obtained from a bank or an investment broker. Please sign your name(s) on the stock power as it is printed on the front of the certificate. Also, please fill in the “transfer unto” space with Bradley University. You do not need to sign the certificate at all when you use a stock power.
Then, to reduce risk, you should mail the stock certificate and the stock power in separate envelopes to:
Attn: Linda Guinn
1501 W. Bradley Avenue
Peoria, IL 61625
You can also transfer the stock by having your signature guaranteed on the back of the certificate and mailing it to Bradley. It should be noted that signing the back of the certificate makes the certificate a negotiable instrument and potentially dangerous if lost.
The date of the gift is the postmark date when mailed by the US Postal Service. The date of delivery is used if the stock gift is delivered by UPS, Fed Ex, or in person. The price of the stock, used in valuing the gift, is the average of the high and low on the date of the gift.
When you mail in your stock, please add a note stating where you want your gift directed.
Method 3 – Brokerage Account
If gifting stock held at the donor’s broker: please have your broker wire transfer the stock from your brokerage account to Bradley’s account at PNC Investments brokerage division (301 S. W. Adams St., Peoria, IL 61631). This type of wire transfer is done via the DTC system and the wire transfer instructions are as follows:
DTC Number 0226
-For further credit to Bradley University Account No. 091-148288
If you decide to transfer securities through the DTC system, please make contact via email or phone with either Linda Guinn (firstname.lastname@example.org, 309-677-3150) at Bradley or Beverly Walker (email@example.com), 309-655-5455 at PNC Investments. It is important that either Beverly Walker or Linda Guinn be notified of the stock gift prior to or immediately after the gift is made to ensure the gift is properly received and credited to Bradley’s account. Without this prior knowledge, it is possible that the DTC transaction will not be successfully completed.
We also have several accounts with different stockbrokers. Please call 309-677-3150 for this information.
The date of the gift is the date the stock is received in the Bradley University account. The price of the stock, used in valuing the gift, is the average of the high and low on the date of the gift. If you have any questions about the transfer process, please contact Linda Guinn at (309) 677-3150.
Method 4 – No Certificate
Call Bradley University for details.
How To Do It – Mutual Funds
There is no single method to transfer shares in a mutual fund to Bradley University. Call your fund’s 800 number and ask for instructions on transferring shares from your account to Bradley University. Most mutual funds require Bradley University to open an account with the fund to accept a transfer. Usually you must send a letter of instruction, indicating the number of shares and authorizing a transfer into Bradley’s account. Once the transfer occurs, the University will liquidate that account and a check will be issued to us. Bradley will consider your contribution equal to the full amount of the value of the mutual fund on the day of the transfer.
Note: This procedure can take as long as three weeks to complete.
For more information about giving to Bradley
University, please contact:
1501 West Bradley Avenue
Peoria, IL 61625
309.677.3161 • Fax: 309.677.2516