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What to Give » Marketable Securities
Thank you for your interest in making a gift of appreciated securities to Oberlin. This page includes instructions for making an outright gift of securities via an electronic transfer or by gifting share certificates. Please remember that in order to identify you as the donor and to thank you for your generosity, you will need to notify the Office of Gift Planning via email (gift.planning@oberlin.edu) or phone (440.775.8599) of your pending transfer. The information we will need from you is found here.
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: Outright gifts to to the Alumni Fund or to establish an endowment. Appreciated securities can also 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
Oberlin would like to acknowledge your generosity in a timely and accurate manner. Unfortunately some electronic transfers come into our brokerage account without information which identifies the donor. In order to ensure that we can identify you as the donor and properly account for and credit your gift, we request the following information from you:
- Please instruct your broker to include your name on the transfer.
- Please notify us directly of the name of the stock and the number of shares you plan to transfer either by calling 440-775-8599 or emailing gift.planning@oberlin.edu.
- If you would like your gift used for a specific purpose, please include this information when you notify us of your pending transfer.
If you plan to make a gift of appreciated securities to create a gift which pays you a life income such as a charitable gift annuity, a charitable trust, or a pooled income fund, please contact the Office of Gift Planning. The transfer instructions differ from those outlined here for outright gifts.
ELECTRONIC TRANSFER
In order to make an outright gift of appreciated securities to Oberlin, please instruct your broker to electronically transfer your stock to Oberlin College’s brokerage account:
Baker and Company
Account Number: 82502918
DTC Number: 0235
Clearing House RBC Dain Correspondent Services
Phone Number 800-321-1640
Your broker may require a signed letter from you to initiate the electronic transfer. Click here for a sample letter.
The date of your gift is the date the stock is received into Oberlin’s account and the value of your gift is the average of the high and low prices on the gift date multiplied by the number of shares given. Please follow up with your broker to ensure that he or she is acting on your request in an expedient manner, particularly if you are concerned about the timing of your gift due to year-end or market volatility. The IRS considers your gift complete only once the actual transfer has taken place.
If you have any further questions, please contact the Office of Gift Planning and thank you for your generosity and continued support of Oberlin.
PHYSICAL DELIVERY OF CERTIFICATES HELD IN YOUR NAME
In order to make an outright gift of appreciated securities which you hold in certificate form to Oberlin, please follow the steps outlined below:
- Mail the unendorsed certificates along with a Letter of Authorization via the U.S. Postal Service first class mail to:
Oberlin College
Office of Gift Planning
50 West Lorain Street
Oberlin, Ohio 44074
If you would like your gift used for a specific purpose, please include this information in this letter.
- In a second, separate envelope, send a signed Stock Power Form and Authorization Letter to the address above.
- Endorse this Stock Power Form and Authorization Letter exactly as your name(s) appear on the front of your certificate(s).
- The stock certificates will not be negotiable until the Office of Gift Planning receives both envelopes. Once we receive them we will proceed with redeeming your stock gift through our broker. Your gift date, which is guided by IRS rules, is the latest postmark from the two envelopes containing the stock power and the certificates.
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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