Gifts of Securities

Making a gift of appreciated securities to Campbell is a very popular method of giving with our donors. As used here, “securities” basically refers to publicly-traded stocks, bonds, or mutual funds which you have owned for more than one year and which, due to appreciation, are now worth more than you paid for them.

Those appreciated securities in which you have your lowest cost basis usually make the best gifts.

Steps to initiate your gift

To begin this process, please supply these detailed instructions to your broker.
The donor’s broker should contact Mr. R. Brandon Whitley, VP/Institutional Advisor at First Citizens Bank (919-716-2015) to inform him of the incoming gift.

The most commonly used transfer instructions are below:

Common Stock
DTC PARTICIPANT NO: 5409
DTC INTERNAL ACCOUNT NO: 74-2094-01-4 (FIRST CITIZENS BANK)
FOR FURTHER CREDIT: CU – Stock Gift a/c 680116019

Mutual Funds
Special instructions are required. The donor’s broker must contact First Citizens directly to obtain specific transfer instructions. Due to the complexity involved, these transfers can take upwards of 30 days to complete.

Questions, issues, or additional instructions please contact:
R. Brandon Whitley, Institutional Advisor, Brandon.Whitley@firstcitizens.com or 919-716-2015
Kenny Jones, Trust Specialist, Kenneth.Jones@firstcitizens.com or 919-716-2741

Direct mailing: First Citizens Bank & Trust Co. Attn: Brandon Whitley
P. O. Box 29522-CLN15, Raleigh, NC 27626

Additional assistance or to report issues with any transactions please contact Campbell University’s Office of Institutional Advancement at (910) 893-1224.

Features & Benefits of Making Gifts of Securities

Charitable deduction.
For federal income tax purposes, the value of your charitable deduction for a gift of appreciated securities to Campbell is the full fair market value of those securities, as determined on the date you gift them by the average daily share value posted by a recognized securities exchange. If the value of your charitable deduction is greater than $500, your income tax return must be accompanied by a completed federal Form 8283/Noncash Charitable Contributions detailing your gift of appreciated securities – and we will supply that to you.

Avoids capital gains tax.
But a charitable income tax deduction is not the only tax benefit you receive by gifting appreciated securities. You also avoid capital gains tax that would have been due had you sold the securities yourself and gifted cash. Many donors find that tax benefit makes gifting appreciated securities a better option than gifting cash.

Deductibility.
Gifts of appreciated securities to Campbell are deductible up to 30% of your federal adjusted gross income for the year – and if your gifts of securities exceed that 30%, then you may deduct the excess over the following five years, again up to 30% of your adjusted gross income for each carry-over year.

How it’s done. It’s easy to transfer securities to Campbell……

1. If you hold stocks, bonds, or mutual funds in a brokerage account:

Notify your broker of your intention. He or she will help you execute a Letter of Instructions identifying the securities (and the exact number of shares or amounts) you want to transfer to Campbell as a gift.

At the same time, notify us of your intention, too. This will give us the opportunity to (a) immediately transmit our “electronic transfer instructions” directly to your broker, (b) secure a copy of your Letter of Instructions from your broker identifying the securities you are gifting, and (c) immediately notify the broker for the University of the details of your gift of securities and that your gift is being transferred electronically.

The date of your gift is the date the securities are electronically received by Campbell’s brokerage account.

2. If you hold stocks or bonds in certificate form:

Notify us of your intention, and we’ll supply you with (and help you prepare) written Stock/Bond Powers. We will also give you a written receipt for the securities you are gifting; then we will deliver these Powers, along with your stock or bond certificates, to the broker for the University for re-registration in the University’s name. This is the easiest method.

If you prefer to handle this yourself by mail, you certainly can do so – but we strongly suggest that you [1] prepare a Stock/Bond Power for each certificate, and that you then [2] mail (a) the Stock/Bond Powers and (b) the stock or bond certificates to us – or the University’s broker – in separate envelopes.

If you only want to gift part of the shares or amount shown on your stock or bond certificate, we can do that – we’ll have a new certificate re-issued in your name for the shares or amounts you are keeping and have that new certificate sent directly to you.

The date of your gift is the date of the written receipt from a Campbell representative. If you’re mailing the Stock/Bond Powers and the stock or bond certificates to Campbell, the date of postmark is your date of gift – but if mailed to Campbell’s broker, the date the certificates are posted to Campbell’s account.

3. If your mutual funds are held at the issuing mutual fund company:

Notify us of your intention, and we’ll help you re-register with the mutual fund company the shares of that mutual fund that you are gifting into Campbell’s name. You don’t want to “redeem” those shares – if you do, you’ll owe capital gains tax on the realized appreciation!

The date of your gift is the date the mutual fund shares are re-registered in Campbell’s name.

4. If you hold stocks in a company’s dividend reinvestment plan:

Notify us of your intention, and we’ll help you (a) re-register the shares of that stock you are gifting into Campbell’s name at the company, or (b) direct the company to send you an actual share certificate in your name representing the number of shares you intend to gift, which you will then gift to Campbell using Stock/Bond Powers as explained above.

The date of your gift will either be the date the shares are re-registered in Campbell’s name, or the date of the written receipt from a Campbell representative – depending on which option you choose.

Please let us know. Notifying us of your intention to make a gift of appreciated securities as soon as you can is very important. We’ll help you complete the gift process. It also gives us the opportunity to (a) secure necessary information from you as to your cost basis in the securities being gifted, and (b) make sure we understand exactly how you want your gift designated.

About Closely-held Stock.

You can gift shares of stock in a company that is not publicly traded (i.e., “closely-held”).

You can receive an income tax charitable deduction for the full fair market value of these shares, and avoid capital gains tax on the appreciation.

And, after these shares are gifted to Campbell, the company can re-purchase these shares from Campbell for cash at their market value.

But, this type of sale cannot be arranged prior to gifting such shares to Campbell; nor can Campbell be legally required to sell such shares back to the company. Otherwise, you may have to pay capital gains tax on the sales proceeds (minus your cost basis) received by Campbell from the sale.

Closely-held corporate shares are almost always held in certificate form, so the rules above describing gifts of stock in certificate form apply.

Closely-held shares are not publicly traded – and therefore the market value of each share is not documented on a recognized securities exchange. So if the value of your charitable deduction is greater than $5,000, not only must your income tax return be accompanied by a completed federal Form 8283/Noncash Charitable Contributions detailing your gift of closely-held stock – but you will also need to obtain an independent qualified appraisal of these shares to accompany your Form 8283 in order to substantiate your income tax charitable deduction – we’ll supply you with that form and help you secure that appraisal.

About Depreciated Securities

If you wish to make a gift of securities which have depreciated (in other words, which are now worth less than you paid for them), you might want to consider first selling those securities yourself and then making a gift of the cash proceeds to Campbell – you won’t have any capital gains tax to pay, and you’ll enjoy the higher deductibility (50% of your annual adjusted gross income, not just 30%) allowed for cash gifts under federal income tax law.

If you have any questions about gifts of securities, please call Patti Tyndall, at 1-800-334-4111, extension 1224; or email her at tyndall@campbell.edu.