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 Meriter Foundation
Making a Gift of Stock
General Information on Transfers | If Stock is in a Brokerage Account
If You Hold Stock Certificates
General Information for Our Donors Regarding the Transfer of Stock to Meriter Foundation
Do:
- For a charitable gift, choose stock that is publicly traded on a National Exchange. Privately held stocks are more difficult to value and normally require an appraisal.
- Be careful to give stock that you have held "long term" to achieve the maximum benefit available to you. This means stock that you have owned for more than a year. Such a gift entitles you to a charitable deduction equal to the fair market value of the stock on the date of gift.
- Remember that charities are required by the IRS to calculate fair market value by using the mean market value on the date the gift is made (this is the date the stock is received by the charity).
Don't:
- Generally it is never in a donor's best interest to give depreciated stock. For a charitable gift, give stock that has appreciated in value and that you have held for more than twelve months.
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If the Stock is Held in a Brokerage Account
Contact your stock broker to let them know that you would like to transfer a gift of stock to Meriter Foundation.
- Meriter Foundation has accounts with several local brokerage firms. The actual transfer of stock can be made relatively easily.
- Your broker will usually want a written confirmation of your instructions. Please check with your broker to verify the correct procedure.
- Please be sure that your brokerage does not sell the stock out of your account. If this occurs, you will be obligated to pay any capital gains tax that is due on the sale. Your brokerage must transfer the stock "IN KIND" to a Meriter Foundation account.
- For year-end gifts, it is not too early to begin working with your brokerage in November to assure that the transfer is completed smoothly prior to the end of the year. For tax purposes, the date of gift is the date the stock is actually received in the charity's account.
Instruct your broker to contact Chad Rohlfs, Meriter Foundation at (608) 417-5300. When a Foundation representative speaks with your broker we will confirm the Meriter Foundation account number at that brokerage and/or open a new account if necessary.
Stewardship Purposes
You and your broker can help Meriter Foundation to be a good steward of your gift by providing this information to us in writing or over the phone:
- The exact name of the securities you are giving
- The number of shares you are giving
- How you wish your gift to be used
By giving us this information you help us to acknowledge your gift promptly with an appropriate thank you letter and receipt for tax purposes, and it assures that the proceeds of your gift to Meriter are used according to your wishes.
If You Have Any Questions
If you or your broker have any questions about how to make a gift of stock, please call Meriter Foundation (608) 417-5300.
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Three ways to transfer stock certificates to Meriter Foundation:
- Endorse and sign the back of the certificate exactly as your name appears on the face of the stock certificate.
a. You must have your signature "guaranteed" at a qualified bank or stock brokerage. This is not the same thing as having it notarized!
b. Mail the certificate to Meriter Foundation at our address and indicate how you would like your gift to be used.
c. The date of gift for tax purposes on this transfer is the date you mail the certificate via U.S. Post Office to Meriter Foundation. To have the mailing date qualify as date of gift for tax purposes you must use the U.S. Post Office.
d. Date of gift for tax purposes for certificates sent via UPS, Federal Express or any other private carrier is the date the stock certificate is received by the charity.
- Another way to make a gift is to send the stock certificate to Meriter Foundation with a form called a "Stock Power."
a. The Stock Power is a separate form available through most banks or stockbrokers. It contains the same information found on the back of the certificate.
b. Do not fill in any information on the back of the stock certificate.
c. On the Stock Power form fill in the name of the charity (Meriter Foundation) and sign it exactly as your name appears on the face of the certificate. Do not fill in any other information.
d. Mail the stock certificate and the Stock Power form to Meriter Foundation at our address using separate envelopes. The certificate becomes negotiable only when we have both the certificate and the Stock Power form.
e. Your date of gift on this transaction is the later of the two mailing dates.
- You may choose to deliver a stock certificate by hand to Meriter Foundation, or use an alternate delivery service such as Federal Express or UPS. In these cases, the date of gift is the date we receive the certificate.
How to Endorse a Stock Certificate or Stock Power
The back of a stock certificate or the face of a Stock Power will look something like the following example. The information you need to provide is noted in italics below:
FOR VALUE RECEIVED, ___________________________________ hereby sell, assign and transfer unto Meriter Foundation, _________ Shares or Bonds of the _____________ Capital Stock of the ___________________________ standing in ______________ name on the books of said _________________ represented by Certificate No. _________ herewith, and do hereby irrevocably constitute and appoint _____________ attorney to transfer the said stock on the books of the within named Company, with full power of substitution in the premises.
Dated: _____________, 2004
___________________________________
(Your Signature)
Signature Guarantee
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Finally, we are grateful for your consideration of Meriter Foundation. The generosity of our donors helps Meriter achieve extraordinary things in pursuit of our mission.
Meriter's mission is:
to heal this day
to teach for tomorrow
to embrace excellence always
to serve our communities -
for a lifetime of quality health care.
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10/1/2007
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