Gifts of Stocks and Bonds
Other than cash, securities (stock shares, bonds, etc.) are a very popular way to fund charitable gifts to Fresno State. Publicly traded securities are usually very marketable, have a clear value, and are easily transferred.
While mutual funds are also a great way to give a charitable gift to Fresno State, they take more time to transfer them to the University. We suggest reaching out to the Fresno State representatives listed below as soon as possible in order to ensure that we receive them in a timely manner.
BEFORE MAKING A TRANSFER
If you wish to give a gift of securities, you must contact the Office of Planned Giving first prior to the transfer
Please contact one of the following individuals with regards to a transfer:
Liz Garvin, Director of Planned Giving: (559) 278-4038, email@example.com
Keith Kompsi, Foundation Financial Services: (559) 278-0838, firstname.lastname@example.org
SELLING SECURITIES VS TRANSFERRING SECURITIES
When discussing your securities with your broker, it is important to know the difference between selling securities and transferring securities.
With the sale of securities prior to gifting them, there may be some tax consequences for the donor. If you decide to go this route, we highly suggest speaking to your financial planner prior to the sale.
By transferring the securities directly from your broker to the charity, you may be able to see a bigger tax incentives for the gift, and avoid having to pay the capital gains tax.
Why Should I Consider a Gift of Securities?
If your securities holdings have appreciated in value, you may have an opportunity to avoid capital gain tax that would be applied to the appreciation when the securities are sold. As with most charitable gifts, you may also earn an income tax charitable deduction for the full market value of the securities. With the tax savings, the "cost" of your gift to Fresno State may be much less than the actual value of the gift made – and preferable to a gift of cash. In a sense, the IRS pays for a portion of your gift!
What If My Securities Declined in Value?
One option is to sell the securities, enjoy a potential income tax deduction for the capital loss, and give the cash proceeds to Fresno State. An income tax charitable deduction is available for the charitable gift.
Can I Also Earn Income Payments From My Gift?
A variety of charitable life income arrangements can allow you to make a gift while retaining a stream of income for yourself or someone else. By funding a life income arrangement with appreciated securities, you may beneﬁt by avoiding or deferring the capital gain taxes that you would otherwise pay. Some alternatives allow you to "lock in" an income that is no longer dependent on ﬂuctuations in the securities markets. Because some of the ﬁnancial beneﬁt is returned to you as income, the income tax charitable deduction will be less than for an outright gift of the securities to Fresno State.
How Can I Make a Gift of Securities to Fresno State?
Click Here for Electronic Transfer Instructions!
Make sure you notify the Office of Planned Giving regarding the gift and it's intended designation. Otherwise, there will be a delay in the gift process.
If you are holding the securities as certificates, contact your account representative for a "stock power" form. Sign the stock power but do not enter other information or dates; our staff will enter that information based on the date we receive the documents. After signing, securely send the certificates and the stock power form (in separate envelopes) to the Planned Giving office.
Warning: If your account representative sells the securities before transferring them, you may end up paying capital gain tax that you expected to avoid. Give clear instructions to transfer, not sell, the securities.
Planning your estate can sometimes get complicated. Even simple estate plans can have severe tax and other legal consequences. As you review these pages, please remember that there are always exceptions to every rule. We encourage you to seek guidance from a qualified licensed professional such as an attorney or certified public accountant to be certain that your desires are fulfilled without any unwelcome surprises.
How Can Fresno State's Planned Giving Office Be of Assistance?
We are charitable planning specialists and have resources available to support both your investigation and your implementation of gift planning techniques. Our services are professional, confidential and collaborative. They are provided without cost or obligation. We encourage you to call on us to assist you, your family and your advisors in exploring financial, estate and charitable planning.
For more information, please contact:
Liz Garvin, CGPP
Director of Planned Giving
5244 North Jackson Ave., M/S KC45
Fresno, CA 93740-8023