Stocks and Property

Gifts of Securities

Gifts of securities to Wake Forest University may be handled in several ways. You may make your gift by electronic transfer, by mail or by hand delivery. To assure proper crediting and distribution of your gift, or if you have any questions regarding gifts of securities, please call or write:

Benefits of Giving Securities

There are definite tax advantages in giving property that has appreciated in value and has been held long-term.

Here's how it works:

Tom has 200 shares of ABC Corporation stock that he purchased for $20 a share three years ago. The current value of ABC Corp. stock is $47 per share. If Tom sold the stock, he would have a taxable, long-term gain on the transaction that can be calculated in the following manner ($47 minus $20 = $27 capital gain per share. 200 shares X $27 = $5,400 in capital gains).

Tom could sell the stock, pay the capital gains tax and donate the remaining proceeds to Wake Forest. If, however, Tom donates the stock to Wake Forest, he would not incur any capital gain and he could deduct the entire current value of the gift (200 shares X $47 = $9,400) as a charitable gift.

Sell Stock & Donate the Proceeds Donate the Stock to Wake Forest
Tom's Capital Gain (15%) $5,400 Tom's Capital Gain (15%) $0
Tom's Capital Gain Tax $810 Tom's Capital Gain Tax $0
Tom's Tax Savings (33% bracket) $2,834 Tom's Tax Savings (33% bracket) $3,102
Actual Gift to Wake Forest $8,590 Actual Gift to Wake Forest $9,400

An income tax deduction is allowed for the full fair market value of the property given. In addition to receiving a charitable deduction for the full fair market value of such a gift, the donor pays no capital gains tax on the appreciation when the gift is made (although the alternative minimum tax implications must be considered). Such a gift is deductible up to 30 percent of a donor's adjusted gross income. Any excess can be carried over for five additional years.

Donors can elect to deduct a gift of long-term appreciated property at the 50 percent ceiling of their adjusted gross income. However, the donor must forgo the appreciation in computing the charitable deduction. In other words, the deduction is limited to the donor's cost basis.

A donor considering a gift of property that has gone down in value would be better off selling the property to realize a deductible loss and then contribute the proceeds to charity and obtain a charitable deduction.

Closely-Held Securities

Usually a gift of closely-held securities, such as one from a family corporation, qualifies for the same advantages (a full deduction, no capital gains tax, and the 30 percent limitation) that are available when marketable securities are given.

An attractive alternative is available to the donor who does not wish to give up control over any part of his or her closely-held stock. This arrangement initially involves an outright gift by the owner of the closely-held stock to Wake Forest; at a later date the corporation could purchase the stock from Wake Forest for cash.

As long as Wake Forest is not obligated to sell the stock to the corporation, the transaction should produce no adverse tax results.

Tangible Personal Property

Gifts of tangible property, such as art, jewelry, antiques, gold or silver, offer an immediate tax deduction. The amount of the deduction is determined by whether or not the gift is related to the educational purposes of the University.

If the use of the contributed property is related to the purposes of Wake Forest, the donor is entitled to a charitable deduction for the full fair market value of the property, subject to the 30 percent ceiling and carryover.

If use of the contributed property is unrelated to the exempt purposes of the University, the donor is entitled to a charitable deduction for his or her cost basis in the property. When the donor is the creator of a contributed tangible asset, the deduction is limited to the actual cost of producing the asset.

Instructions For Transferring Stock
Instructions to be used when Transferring Shares from One Name to Another
  • The original stock certificate or affidavits of loss and/or non-receipt must be completed and submitted.
  • Stock certificate assignment form(s) (Stock Power(s)) must be executed by the registered owner(s) giving us the name(s), address(es) and Social Security numbers(s) of the transferee(s). If the security is jointly owned, both must sign.
  • A letter of intent to donate the stock should accompany the stock power.
Instructions to be used when Transferring Shares from a Custodial Registration
  • The original stock certificate or affidavits of loss and/or non-receipt must be completed and submitted.
  • Stock certificate assignment form(s) (Stock Power(s)) must be executed giving us the name(s), address(es) and Social Security number(s) of the transferee(s). The assignment is to be executed by:
    • (a) The custodian OR (b) The beneficiary. (If signed by the beneficiary, a copy of his/her birth certificate must be presented confirming that the age of majority has been reached.)
    • The signature of the custodian OR the beneficiary must be guaranteed by an eligible guarantor institution (bank, stock broker, savings and loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.
Instructions to be used when Transferring Shares from Descendant(s)' Name
  • The original stock certificate or affidavits of loss and/or non-receipt must be completed and submitted.
  • Stock certificate assignment form(s) (Stock Power(s)) must be executed by the executor or administrator, giving the name(s), address(es) and Social Security number(s) of the transferee(s).
  • The signature(s) of the assignor(s) must be guaranteed by an eligible guarantor institution (bank, stock broker, savings and loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.
  • Official Certificate of Death (under seal).
  • Official Court certificate (under seal ) showing appointment and incumbency of the executor or administrator (if estate did not go to probate a waiver of probate must be filed).
Instructions to be used when Transferring Shares from a Business Entity
  • The original stock certificate or affidavits of loss and/or non-receipt must be completed and submitted.
  • Stock certificate assignment form(s) (Stock Power(s)) must be executed by the transferor(s), and include the name(s), address(es) and Federal Employer Tax I.D. # (or Social Security #(s)) for the transferee(s).
  • The signature of the assignor must be guaranteed by an eligible guarantor institution (bank, stock broker , savings and loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.
  • (a) If the registered owner is a corporation:
    • Certified copy of Resolution by the Board of Directors or extract from By-laws authorizing the assigning officer(s) to sell, assign and transfer securities.
  • (b) If the registered owner is a partnership:
    • Affidavit that the registered holder is a partnership, and that the person signing is a partner with full authority to sell, assign, and transfer securities.
  • (c) If the registered owner is a proprietorship:
    • Affidavit that the registered holder is a proprietorship, and that the person signing is the proprietor with full authority to sell, assign and transfer securities.
Instructions to be used when Transferring Shares from a Joint Registration
  • The original stock certificate or affidavits of loss and/or non-receipt must be completed and submitted.
  • Stock certificate assignment form(s) (Stock Power(s)) must be executed by the surviving tenant(s), giving the name(s), address(es) and Social Security number(s) of the transferee(s).
  • If your intention is to add another name as joint owner or change the registration in its entirety, your signature(s) will have to be guaranteed by an eligible guarantor institution (bank, stock broker, savings and loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.
  • However, if the shares are to be registered in your name only, your signature is sufficient.
  • Official Certificate of Death (under seal).
Instructions to be used when Transferring Shares To or From a Trust
  • The original stock certificate or affidavits of loss and/or non-receipt must be completed and submitted.
  • Stock certificate assignment form(s) (Stock Power(s)) must be executed by the registered owner(s) giving us the name(s), address(es) and Social Security number(s) of the transferee(s). If the security is jointly owned, both must sign.
  • The signature of the trustee must be guaranteed by an eligible guarantor institution (bank, stock broker, savings and loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.
Instructions to be used when Transferring Shares Due to the Death of the Registered Holder
  • The original stock certificate or affidavits of loss and/or non-receipt must be completed and submitted.
  • Stock certificate assignment form(s) (Stock Power(s)) must be executed by the registered owner(s) giving us the name(s), address(es) and Social Security number(s) of the transferee(s).
  • Official Certificate of Death (under seal).
  • Official Court Certificate (under seal), showing appointment and incumbency of the executor or administrator.
  • Copy of the Title and Signature pages of the documents to support the authorization of the signing individual.
  • The signature of the trustee must be guaranteed by an eligible guarantor institution (bank, stock broker, savings and loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 (if estate did not go to probate a waiver of probate must be filed).

Electronic Transfer

Electronic Transfer is the most efficient way to transfer securities to Wake Forest. If your stock is held at a broker, notify the broker that you wish to make a gift of securities to Wake Forest University. Your broker will need written authorization from you before they can make the transfer. Be sure to tell them the name of the stock that you want to transfer, the number of shares, and where you would like your gift to be designated.

Securities should be transferred directly to Wake Forest through:

Wells Fargo Advisors
Account Number: 8995-7536 DTC # 0141
336.721.4221 or 800.759.6500
Wake Forest Tax ID number is: 56-0532138

We also ask that you contact Gayle Park either by email at parkerdg@wfu.edu or by calling 336.758.6086 to let her know that the gift is in process. Shares are sometimes transferred into our account without information, including the donor’s name. Your phone call will allow us to match up your name with the correct stock gift.

Mailing Stock Certificates

If your securities are not held at a broker, you may mail the certificates to:

Financial and Accounting Service
Box 7201
Winston-Salem, NC 27109

If mailing, send your unendorsed certificate(s) and a cover letter stating that you are gifting this security to the University. The cover letter should include your name, address, and purpose of the gift in one envelope. In a second envelope, send a signed, signature guaranteed, stock power.

We strongly recommend using registered mail to forward your certificates and stock power. Please DO NOT mail endorsed certificates. Once the certificate is endorsed, it is legal tender and can be exchanged by anyone. We strongly recommend that certificates not be sent to a transfer agent for registering in the University’s name. This is unnecessary and may result in needless delays.

Hand Delivery

Certificates may be given to a University Development Officer or delivered to University Advancement, Alumni Hall, Room 207.