Planned Giving

Marketable Securities Gift

Securities such as stocks, bonds and mutual funds make a wonderful gift and the tax savings to the donor can be significant. Making a gift of long-term (held over 12 months) appreciated securities or mutual funds to Claflin University entitles you to a charitable deduction for the fair-market value of the donated asset, and you can avoid paying capital-gain tax you would otherwise pay upon the sale of the appreciated securities. This tax deduction may be up to 30% of your adjusted gross income, and any amount over this limit may be carried forward for five years.

A gift of marketable securities has the following benefits:

• a federal income tax deduction equal to the fair market value of the securities on the date of your gift (provided you have owned the securities for more than one year)
• avoidance of capital gains tax on the transfer

Example 1:

Trevor Morgan invested $5,000 in a hot stock that has grown to a value of $10,000 in 16 months. When Mr. Morgan makes a direct gift of his shares of stock to Claflin University, he entirely bypasses the capital-gain tax. Because he submits itemized tax returns and is in the 28% tax bracket, Mr. Morgan receives an income-tax deduction for a gift of $10,000, which saves him $2,800 in taxes. In addition, he has also saved $750 in capital-gain tax, since his $5,000 profit from his appreciated stock would have been taxed at a 15% rate. It only costs Mr. Morgan $6,450 to make his $10,000 donation to Claflin University.

The official value of your gift will be the average of the high and low quotes on the day the securities are received by Claflin University. Normally, a transfer will take place within two or three business days.

To transfer marketable securities to Claflin University, and so that your generosity may be acknowledged and a receipt for IRS purposes may be issued, the following information will be needed:

• Your name, address and phone number (needed for receipting purposes);
• Name(s) of the security(ies) being transferred;
• Number of shares (stocks) or face value amount (bonds)
• Approximate current market value of the securities;
• The name, address and phone number of your advisor.

To make a gift or to request additional information about deferred charitable gift annuities, contact:

Sunya L. Young
Director of Planned Giving
Division of Institutional Advancement
400 Magnolia Street Orangeburg, SC 29115
Phone: (803)535-5704; Toll Free: (888)223-7103; Fax: (803)535-5371
E-mail: syoung@claflin.edu

The information provided on this website is for informational purposes only and is not intended as legal, tax or investment advice. Please consult your accountant, financial advisor or attorney to assist you in determining which planned giving option is most appropriate given your financial goals and objectives.