Advantages of Giving Appreciated Stock and Mutual Funds Include:
- Avoidance of capital gains tax. Any gain in the stock/mutual fund is
taxable if you sell it yourself, but not if you give it to the Eastern
Michigan University Foundation.
- A charitable deduction for federal income tax purposes based on the full
fair market value of the stock/mutual fund on the date the gift is received by
the Foundation, assuming it has been held one year or more.
- Gift credit from the Foundation based on the full fair market value of the
stock/mutual fund, not its cost basis.
- In matters of personal tax consideration, donors should consult their
financial advisers.
Note: The gift value is based on the average of the high and low share price
on the date the shares are received by the Foundation.
Gifts of Stock
The best method may be determined by whether you actually hold the stock
certificate.
- Method 1 - Electronic Transfers
Please contact Laura Wilbanks, the Foundation's Chief Financial Officer, at
734.481.2318 or via
e-mail at laura.wilbanks@emich.edu, for specific instructions.
- Method 2 - Stock Certificate
If you hold the stock certificate, please mail it to the Foundation using the
following procedure:
1. Mail the unendorsed certificate to the Eastern Michigan University
Foundation, 1349 S. Huron St., Ypsilanti, MI 48197, by certified mail.
2. In a separate envelope, mail a signed stock power form, with your signature
guaranteed by a commercial bank or brokerage firm, by ordinary first-class
mail to the same address as the stock certificate.
3. If the certificate is for more shares than you intend to give, include
written instructions for the Foundation to keep a specified number of shares
and we will have a certificate for the remaining shares reissued to you.
- Method 3 - No Certificate - Please contact the Foundation at 734.481.2318,
or e-mail laura.wilbanks@emich.edu
Mutual Funds
There is no single method to transfer shares in a mutual fund to the
Foundation. Call your fund's toll free number and ask for instructions on
transferring shares from your account to the Foundation. Most mutual funds
require the Foundation to open an account with the fund to accept the
transfer. Usually you must send a letter of instruction, indicating the
number of shares and authorizing a transfer into the Foundation's account.
Once the transfer occurs, the Foundation will liquidate the account and a
check will be issued to us. The Foundation will consider your contribution
equal to the full amount of the value of the mutual fund on the day the shares
are received in the Foundation's account.
Note: This procedure can take as long as three weeks to complete.
