How to Give
Securities

Securities Utilizing securities that have appreciated in value to fund charitable gifts is one of the most effective means of benefiting charity while obtaining considerable income tax advantages. If an individual sells a stock or bond that has increased in value, he will be subject to a tax on that capital gain. Because a public charity is not subject to income taxation, it can sell either of those securities without being subject to the capital gains tax.

How does one transfer stock to charity? It depends on how you currently hold the stock.

If you hold the stock certificate, the gift can be completed two ways:

By Mail: The stock certificate, along with a letter of instruction regarding the purpose for which the gift is to be used, may be mailed to the following address:
    Southern Methodist University
    Office of Planned Giving
    P.O. Box 750305
    Dallas TX 75206
It is recommended that you use registered or certified mail to send the certificate. In a separate envelope, please mail a signed Stock or Bond Power. The Stock or Bond Power can be obtained from your broker or from the Office of Planned Giving. Please contact Marianne B. Piepenburg by e-mail or at 214-768-3410 for the form.

By Hand Delivery: The stock certificate, along with a letter of instruction regarding the purpose for which the gift is to be used, may be delivered by hand to the following address:
    Southern Methodist University
    Office of Planned Giving
    6200 N. Central Expressway, Suite 2060
    Dallas, Texas 75206
The stock certificate also must be accompanied by a Stock or Bond Power, available from your broker or the Office of Planned Giving.

If the stock is held in a brokerage account, the gift can be transferred electronically.

SMU maintains accounts at several major brokerage houses and if SMU has an account at the same broker as you, the stock can be transferred internally. Often this is the most efficient way to transfer your stock electronically. Please contact the Office of Planned Giving+ at 214-768-3410 to determine whether SMU holds an account at the same brokerage house.

Transfers can be made into SMU's main brokerage account from any account in the country by using the following instructions:
    Southern Methodist University
    Account # 304-88446
    RBC Wealth Management
    DTC # 0235
    Contact: Bobby Leach at 972/612-4266
Any electronic transfer should be accompanied by written notice to the Office of Planned Giving with the following information:
  • Donor's name
  • Name of stock and number of shares being transferred
  • Purpose for which the gift is to be used
This notice may be mailed to the address above or may be faxed to 214-768-2669.

Determining the Value of the Gift

In addition to avoiding the capital gains tax, a charitable gift of securities held for more than one year entitles the donor to an income tax deduction equal to the value of the security at the time it is given to charity. However, determining the value of the gift to charity when the gift is made with securities is not as simple as it would be if the gift were made with cash. The Internal Revenue Service Regulations state that the value of the gift for income tax purposes is determined on the date the gift is completed and is equal to the mean of the high and low of the values traded on that date.

Generally, the gift is complete when it has been irrevocably transferred by the donor and comes under SMU's custody and control. When mailed, the gift is complete when it is postmarked. When hand delivered, it is complete when received by an SMU representative. When transferred electronically, the gift is complete when it arrives into SMU's brokerage account.

Gifts of Mutual Funds

The process of giving mutual fund shares can vary by company, so please contact the Office of Planned Giving at 214-768-4745 for specific instructions.

 


Call 1-800-768-9996 to make a gift by phone or to ask a question about making a gift to SMU.