If you transfer long-term, appreciated stock to the University, it can be sold by UD and you will avoid tax on the gain. If your stock has been held long-term but has decreased in value, it may be more advantageous for you to sell the stock and give cash to UD.
PROCEDURES FOR STOCK GIFTS
Stock gifts can be made in several different ways. Due to the Securities Exchange Commission (S.E.C.) regulation requirement for signature(s) to be Medallion guaranteed by an authorized officer of a participating brokerage firm or a bank registered by S.E.C., it is suggested that potential donors deliver stocks they may want to donate on short notice to a broker. The stock then can be readily moved in street name.
The following are methods, in order of preference, for transferring stock to UD. In all cases, a letter (or copy of your instructions to the broker) should be sent to the Senior Administrative Assistant named below to help with identification and should indicate whether proceeds from your gift should be unrestricted, or earmarked for a specific purpose.
- If stock is held in a brokerage account (in street name), you may instruct your broker in writing to place the shares into an account in the name of the University of Delaware. The broker should contact the Senior Administrative Assistant named below for instructions on disposal of the shares, as the University may have an account with your broker.
- Stock may be transferred directly to the University's brokerage account via Depository Trust Company (DTC). The Wilmington Trust DTC account number is 2215. Instructions should be given to place the stock in the UD's Gift Account, Number 6727-3, at Wilmington Trust Company.
- If the stock certificate is held in the name of the donor, the back of certificate can be endorsed and dated, but it should not be assigned to UD. The signature must be Medallion guaranteed.
If the stock certificate is in the name of the donor and not endorsed on the back of the certificate, the donor must execute a Stock Power and have his or her signature Medallion guaranteed on the stock power.
When using the stock power, fill in only the signature(s) and the date at the bottom. Please deliver or mail the certificate(s) and stock power by certified mail to:
Mrs. Suzanne Deshong
Senior Administrative Assistant
Office of the Treasurer
122 Hullihen Hall
University of Delaware
Newark, DE 19716
If mailed, the certificates and the stock power should be sent separately for security. The date of the gift will be the day the certificate is delivered to the University or, if mailed by U.S. mail, the postmark date
- While not the preferred method, stock may be sent via mail if it is made out in the name of UD. No stock power is required.
- If giving mutual fund shares, you should work with your broker or mutual fund and UD to have the shares reregistered in the University's name.
For assistance in making a gift of stock, please contact the Office of University Development at (302) 831-2104 or the Office of the University Treasurer at (302) 831-8964.
