Stocks & Bonds

Why give securities?
Stocks that have appreciated in value are attractive to use for charitable gifts.  They allow the donor to make a significant gift that involves less out-of pocket cost.  Stocks may be donated outright or used to create an income-producing gift to benefit not only WVU, but the donors, or beneficiaries.  Capital gains taxes on the appreciation in value are avoided on outright gifts and substantially avoided on income-producing gifts.  In addition, an income tax deduction for the gift value will lower the donor’s current tax liability.  In either case, the donor selects the purpose of the gift to help WVU, its students, faculty, staff, facilities and programs.

If you hold stock in street name
The Foundation will normally use an established WVU Foundation account it has with the donor’s broker, if one exists, or request a DTC transfer to one of the Foundation’s other brokerage accounts.  The donor will instruct his or her broker to call Beth Michael (304-284-4032) or Dorothy Dotson (304-284-4034) at the Foundation for these instructions.  The donor’s broker requires a letter of instruction as authorization for this transaction. The transfer is accomplished by “book entry” within the brokerage firm, from the donor’s account to the Foundation’s account or by DTC transfer of the securities to the Foundation’s designated brokerage account. For the donor’s benefit, sample authorization letters are available on the Foundation website.

A copy of the letter of instruction to the donor’s broker (or to the Foundation if the donor delivers stock certificates to the Foundation) authorizing the transfer to the Foundation should be sent to the attention of Beth Michael at the Foundation for follow-up (and establishment of a new Foundation account at the broker or mutual fund, if necessary).  It is necessary that all owners (the person(s) named on the stock certificate) of the gifted securities sign the letter of instruction as the Foundation will not be the legal owners of the securities until such letter is received.  A delay in receiving such letter will delay the donor’s gift of securities.  For the donor’s benefit, sample authorization letters are available on the Foundation Website. The date of transfer of the security into the Foundation’s account is the date of delivery for valuation purposes.  From the donor’s perspective the transaction is complete.

A gift receipt will be prepared based on the average of the high and low prices on the documented date of delivery.  That price will be multiplied by the number of shares donated.  The resulting total may be the donor’s charitable income tax deduction if the donor has owned the stocks for a year and a day or longer.  The donor should consult his or her tax advisor.

If you have physical possession of certificate
The rules of the Securities and Exchange Commission (SEC) require that in all circumstances, the signature(s) on the stock certificate(s) must be medallion guaranteed by the donor’s bank or brokerage company.  (This is not a notary seal).

The Certificate should be transferred to West Virginia University Foundation, Inc. by completing the assignment on the back of the certificate or by completing a separate stock power.  Assignment should be completed as follows:

I.D. number of assignee:  55-6017181
Name and address of assignee:
West Virginia University Foundation, Inc.
One Waterfront Place
7th Floor
P.O. Box 1650
Morgantown, WV  26507-1650

If you are mailing the certificate, it should be sent by certified mail to the Foundation at the above address.  Request a return receipt.  A costlier method, but even safer, is to send the certificate by registered mail and insure it for 2% of its value.  This will cover the cost of the surety bond required to replace the certificate if it is lost in the mail.  If the donor chooses registered mail, the donor should request a return receipt.  If a separate stock power has been prepared, it should be mailed under separate cover from the stock certificate.  The stock power should be sent by certified mail with a return receipt.  The donor should be sure to include a note specifying the gift purpose/restrictions.

If you are delivering the certificate to a Foundation representative, the representative accepting delivery will complete a receipt for the donor showing the name of the security, number of shares, date received, and the donor’s name.

If a donor wishes to donate a number of shares smaller than that represented by the donor’s certificate, written instructions with the donor’s signature identifying the security name, number of shares being gifted, number of shares to be reissued to the donor, and the exact name, address and social security number for the reissued certificate should be sent to the Foundation office.

The valuation date is the postmark date if mailed. The Foundation retains the envelope to substantiate the gift date. If hand delivered, the delivery date is the date received.

A gift receipt will be prepared based on the average of the high and the low prices on the documented date of delivery.  That price will be multiplied by the number of shares gifted.  (The net asset value is used for mutual fund valuation.)  The resulting total may be the donor’s charitable income tax deduction if the donor has owned the stocks for a year and a day or longer.  In all cases, the donor should consult his or her tax advisor.

If you are transferring mutual funds
If you wish to transfer all or a portion of a mutual fund holding, a letter of instruction from the donor to the mutual fund is required with a medallion signature guarantee (not a notary seal) from the donor’s bank or broker.

If your security is held in Drip or Direct Registration
The donor should contact the transfer agent for the donor’s specific security to obtain the form required to transfer shares to the Foundation.

Contact information
For additional information or assistance, contact the WVU Foundation Investment Group at
304-284-4032 or 800-847-3856