Gifts of Securities

As a tax-wise donor you may be considering a gift of highly appreciated stock because of the significant tax benefits. In most cases, when you donate appreciated stock you can deduct the full, fair-market value of the asset donated (not the cost basis) and avoid paying all capital gains tax on the sale. Three things you should consider when donating securities are: how to provide your stock gift, how to determine the date of your gift, and how to establish the value of your gift. These issues are discussed below.

If you are interested in making a gift of securities to Maritime College, please contact Mary Muecke at the University Relations office via email mmuecke@sunymaritime.edu or phone at 718-409-7444.

How to Provide Your Stock Gift

Depository Trust Company (DTC) - This method is used when shares are held with your broker or in a trust account at a bank. DTC transfers should be coordinated through the CSU Foundation so there is adequate follow-up and review every step of the way. Generally, the process involves writing a letter of authorization to your broker or bank outlining your intent so that your investment representative knows what stock, and how many shares of it, you are interested in donating.

Mail - If you are the owner of a stock certificate you wish to donate and have the stock certificate in your possession, you may donate it by mail. To donate the stock certificate to CSU you must mail, in separate envelopes, the actual certificate (unsigned) and a completed Irrevocable Stock/Bond Power form with medallion guarantee seal. The Irrevocable Stock/Bond Power form may be printed here or you may obtain one from your broker. The medallion guarantee can be obtained from your bank or broker. Send each document in a separate envelope by certified mail to:

Office of University Relations
Maritime College, State University of New York
6 Pennyfield Avenue
Throggs Neck, NY 10465

We will notify you immediately upon the receipt of your certificate.

Hand Delivery - If you are the owner of a stock certificate you wish to donate and have the stock certificate in your possession, you may deliver the certificate to Maritime College in person. We are located in the administration wing of Fort Schuyler. Bring with you the actual certificate (unsigned) and a completed Irrevocable Stock/Bond Power form with medallion guarantee seal. The Stock/Bond Power form may be printed here or you may obtain one from your broker. The medallion guarantee can be obtained from your bank or broker.

Registration through Transfer Agent - You may also donate a stock certificate by re-registering the certificate in the name of Maritime College, State University of New York. This process is simple but usually takes longer. Please notify Mary Muecke in the Office of University Relations if you would like to pursue this option - email mmuecke@sunymaritime.edu or phone 718-409-7444. We will need to provide you with a tax identification number and obtain some information from you so we are able to match the certificate with the correct donor when it arrives. The certificate should be re-registered as follows:

Maritime College, State University of New York
6 Pennyfield Avenue
Throggs Neck, NY 10465

How to Determine the Date of Your Gift

DTC transfer - The date of your gift is determined by the date the securities are deposited into a Maritime College, State University of New York account. Please note that this date MAY NOT coincide with the date you gave instructions to make the gift.

Mail - When you mail the certificate and Irrevocable Stock/Bond Power in separate envelopes, the date of your gift is determined by the postmark on the envelope the college receives last. It is the responsibility of the donor to document the date of the gift for tax purposes. We recommend that you obtain proof of mailing for your records.

Hand Delivery - The date of your gift is the date both the certificate and the Irrevocable Stock/Bond Power are received by Maritime College.

How to Establish the Value of Your Gift

For publicly traded securities, your gift value is determined by the average of the high and low market prices on the date of your gift. The valuation assigned by the College is for internal gift recognition purposes only. It is the responsibility of the donor to determine the value for tax purposes.

More Helpful References

IRS Publication 526 - Charitable Contributions
IRS Publication 561 - Determining the Value of Donated Property

Both publications may be obtained by calling the IRS at 1-800-829-1040 or through the IRS Web site.

If you need more information or are interested in pursuing this type of gift further, please contact Mary Muecke, Director of Gift Planning, email mmuecke@sunymaritime.edu or phone 718-409-7444.

Be sure to consult your legal or tax counsel on the deductibility of all charitable contributions.