Giving long-term appreciated stock offers you a potential three-fold tax savings. First, you avoid paying capital gains tax on the increase in value of your stock. Second, you receive a tax deduction for the full fair market value of the stock on the date of the gift. The third tax savings is a reduction in the value of the donors’ taxable estate by the amount of the gift.
The value of your gift and the date of the gift are both determined by the date of the transfer, which is the date of the securities are received in a Ripon College account. To be sure the gift is made this calendar year, please allow adequate time for the transfer.
|Securities/Appreciated Property Worksheet|
|Assume you purchased a share of the Red Hawk Corporation in 1995 for $250 and the share is now worth $1,000. Also assume you are in the 27.5-percent federal income tax bracket. Below is an illustration of the benefit of donating an appreciated security to Ripon instead of a cash gift of $1,000.*|
|Size of gift||$1,000||$1,000|
|Income tax deduction||($275)||($275)|
|Capital gains tax savings||n/a||($150)|
|After tax cost of gift||$725||$575|
|* The stock must be long-term, owned for at least one year and a day.
* Always consult with your personal tax adviser to see how a gift of securities can benefit you and Ripon College.
Making a gift with these assets is a simple 2-step process:
1. Let us know you will be making the gift
Call, email or fax your name, the name of the security and number of shares to:
Donna M. Bukowski
Phone: (920) 748-8367
Fax: (920) 748-9262
2. Transfers of Individual Securities/Bonds from a Bank or Broker
Please instruct your broker to transfer your gift via DTC to our account:
Ripon’s Broker: BMO Harris Financial Advisors, Inc.
DTC code: 0443
Account name: Ripon College
Account number: 4RP-214270
Tax ID: 39-0826049
Contact # 1.800.472.0060
Receipt and Acknowledgment
Ripon will issue an acknowledgment letter stating the nature of the gift, the gift valuation date and the gift valuation amount for gift recognition purposes.
To make a stock transfer by mail please contact Donna Bukowski or the Advancement office for instructions.
Gift valuation date is the date the donor relinquishes total control of the asset to Ripon. In other words, the stock must be completely out of the control of the donor and in Ripon’s control. The date this happens depends on how the donor transfers the stock. It is the responsibility of the donor to document the date of the gift for tax purposes.
Electronic transfer through DTC
The gift date for gifts made this way is the date the securities/bonds are deposited to our BMO Harris account. It is not the date a broker puts the stock into a “temporary” gift account or “holding” account. Please note: Giving instructions to your broker does not constitute completion of a gift. If you write a letter of instruction to your broker on December 27, but the securities are not transferred until the following January 2, the gift valuation date is January 2.
By U.S. mail
Stock certificates that are mailed are considered to be a legal gift as of the date of postmark for the certificate or signature guaranteed stock power, whichever is later.
By UPS, FedEx, etc.
Stock certificates sent via third party provider are considered to be a legal gift as of the date of receipt at Ripon.
Certificate is hand delivered
The date both the certificate and the Irrevocable Stock/Bond Power are received by Ripon is the date of the gift. A signed stock certificate delivered in person will be valued on the date on which Ripon takes possession.
Stock registered to Ripon
Stock certificates registered in the name of Ripon are considered to be a legal gift as of the date of registration in Ripon’s name.
Mutual fund units
The date they are deposited to either our BMO Harris account or to a mutual fund account in the College’s name.
End of Calendar or Fiscal Year Gift Timing
If you intend to make a gift of securities, mutual funds, bonds or wire transfer prior to the end of the calendar or fiscal year, please allow three to six weeks processing time, depending on the type of transfer. Please contact us as soon as possible so we may assist you with this process. Ripon College’s fiscal year ends June 30.
Gift valuation assigned by Ripon is for gift recognition purposes only. It is the responsibility of the donor and his/her tax advisors to substantiate how the value of the gift was determined for tax purposes.
Calculated by averaging the high and low quoted selling prices for the stock as of the gift valuation date.
Calculated by averaging the bid and ask prices for the bond as of the gift valuation date.
Mutual fund units
Calculated using the NAV (net asset value) for the fund as of the gift valuation date.
To electronically transfer cash to Ripon, please contact Lori Schulze in the Controller’s Office at 920.748.8310 or by email at email@example.com.