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Instructions for
Making a Gift of Securities to the Church
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Gifts of appreciated securities such as shares of stock,
mutual fund units, bonds or other securities offer significant
tax advantages and are easy to make. Generally, contributions
of appreciated securities held for more than one year are
deductible at fair market value for up to 30 percent of your
adjusted gross income and do not trigger any capital gains
taxes on the appreciation.
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Your contact information for making a gift of stock or securities:
Ruth Hubert, Financial Secretary
St. Andrew’s Episcopal Church
79 Denton Road
Wellesley, MA 02482
Phone: (781) 235-7310
Fax: (781)
235-0067
E-mail: rwh@standrewswellesley.org
Securities Held by Your Bank or Broker
It is usually best to transfer securities held by your bank or
broker electronically (preferred method) to St. Andrew’s
via the Depository Trust Company (DTC) system.
Please instruct your bank or broker to transfer your gift of securities
via DTC to our account as follows:
- First, provide written instructions about your gift to your
bank or broker — e.g., stating your intent to make an irrevocable
gift to St. Andrew’s Episcopal Church, Wellesley, Massachusetts,
the name of the stock and the number of shares or units to be
transferred electronically, the purpose (e.g., current, prior
or future year pledge payment) or designation (e.g., Capital
Campaign Fund, Endowment Fund) of the gift, and the date by which
the gift should be transferred. Please ask your bank or broker
to include your name and address in the DTC transfer instructions.
- Second, instruct your bank or broker to contact Ruth Hubert
(see contact information above) to alert St. Andrew’s Church
of your gift, and to obtain the (i) brokerage Account Number of
St. Andrew’s Church, and (ii) DTC Code.
- Third, notify Ruth Hubert (see contact information above) of
the details of any securities sent electronically to ensure proper
crediting and acknowledgement of your gift.
Mutual fund units cannot be sent electronically using the DTC
system and thus may require a longer lead-time to ensure transfer
by the end of the calendar year. Please check with your bank, broker
or mutual fund company since the transaction time for transferring
mutual fund units can be as long as six weeks due to sales restrictions
and transfer procedures imposed by many mutual funds.
Securities Held by You
If you hold the stock or bond certificate(s) please contact Ruth
Hubert (see contact information above) to obtain two forms – (i)
an Irrevocable Stock or Bond Power, and (ii) a Letter
of Authorization to Deposit Stock and Bond Certificates.
- First, send by registered mail, or deliver by hand, without
any endorsement, the stock or bond certificate(s)
with a letter of transmittal, signed by the registered owner
of the certificate(s), to Ruth Hubert (see contact information
above) stating the intent to make an irrevocable gift to
St. Andrew’s Episcopal Church, Wellesley, Massachusetts,
the name of the stock and the number of shares or units to
be transferred, the purpose (e.g., current, prior or future
year pledge payment) or designation (e.g., Capital Campaign
Fund, Endowment Fund) of the gift.
- Second, in a separate envelope, mail or deliver by hand both
signed forms to Ruth Hubert (see contact information above).
A separate, signed Irrevocable Stock or Bond Power and
signed a Letter of Authorization to Deposit Stock and Bond
Certificates is required for each separate security. A Medallion
signature guarantee is required on each form to certify that
your signature is genuine. You should sign each form in the presence
of an authorized officer of a bank, brokerage firm, trust company,
or other financial institution that participates in the Medallion
signature guarantee program (note: a notary public cannot provide
a signature guarantee). Only your signature, with the Medallion
signature guarantee, is required on each form. Be sure to also
include with a copy of your letter transmittal letter (above)
that accompanied the certificate(s).
Acknowledgement and Receipt
As soon as we receive a security gift and match it to the donor,
the Church will send an acknowledgment letter stating the nature
of the gift, the gift valuation date, and the gift valuation amount.
Our letter will not contain the verbiage required by the Internal
Revenue Service to claim a tax deduction; rather, within 2-3 weeks,
the Financial Secretary will send a follow-up receipt letter stating
that no goods or services were exchanged for the security gift.
Gift Valuation Date
Your gift is valued on the day on which St. Andrew’s Church
assumes ownership and control of the securities:
- The day the security is received in the brokerage account of
St. Andrew’s Church for electronic transfers through DTC,
- The day mutual fund units are deposited into the brokerage
account of St. Andrew’s Church or to a mutual fund account
in its name,
- The postmark date on the envelope (if the certificate and the
two signature guaranteed forms are sent of different dates, the
later date will be used) if the physical certificate is sent
by mail, or the day on which St. Andrew’s takes physical
possession of either the certificate or the two signature guaranteed
forms, whichever is later, if the physical certificate and forms
are hand delivered.
Gift Valuation Method
The value of a stock gift is calculated by averaging the high
and low quoted selling prices for the stock as of the gift valuation
date. The value of a bond gift is calculated by averaging the bid
and asked prices for the bond as of the gift valuation date. The
value of a mutual fund gift is calculated using the net asset value
for the mutual fund as of the gift valuation date.
It is the responsibility of the donor to document the date of
the gift and its value for tax purposes. If you intend to make
a gift of stock, mutual fund units, bonds or other securities prior
to the end of the calendar year, allow three to six weeks processing
time, depending on the type of transfer — e.g., the
transaction time for transferring mutual fund units can be as long
as six weeks due to sales restrictions and transfer procedures
imposed by many mutual funds. Please contact Ruth Hubert
(see contact information above) as soon as possible so we may assist
you with this process.
As always we thank you for your generous support.
St. Andrew’s Episcopal Church is a religious
organization and does not provide tax, legal, or financial advice.
Any document or information shared by our staff is intended to
be educational. Donors should seek counsel from their own tax,
legal and financial advisors. Any tax advice contained in this
communication is not intended or written to be used, and cannot
be used, for the purpose of (i) avoiding penalties under the
Internal Revenue Code or (ii) promoting, marketing or recommending
to another party any transaction or other matter addressed herein.
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