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Gifts of Securities

Gifts of Readily Marketable Securities Gift of Stock Held in Certificate Form

When the Donor has the actual stock certificates, a gift can be made to the Attorney-CPA Foundation by:

  1. Assignment

    On the back of the original certificate is an assignment form to transfer ownership of stock. The Donor may complete it as follows:

    • In the blank for name and address of assignee, enter "The Attorney-CPA Foundation" along with the Attorney-CPA Foundation's mailing address.
    • Have all parties shown as owners sign and date the assignment in the presence of a banker or stock broker so that the latter can "guarantee" their signatures. Having the assignment notarized or witnessed is not sufficient. The signatures must be medallion guaranteed by a bank or broker 

  2. Irrevocable Stock Power

    The preferred method to receive a gift of stock is to use an Irrevocable Stock Power completed as set forth above.

For security, it is recommended that the Donor mail the certificate in one envelope and the stock power in another. If the Donor mails the certificate(s), they should be sent to the Treasurer. The Donor may wish to use registered mail, return receipt requested

Gift of Stock Held in Brokerage Account

Many donors own securities which are held in street name by a brokerage house. In this instance, there are two ways a gift can be made to the Attorney-CPA Foundation. They are listed below in order of preference:

  1. Re-issuance of the Shares:

    • The Donor instructs the broker to issue a certificate, for the number of shares to be donated, in the name of the Attorney-CPA Foundation.
    • The broker sends the new certificate, together with a transmittal identifying donor, by certified mail to the Business Office.
  2. Broker to Broker Wire Transfer

    This procedure may be used when time is critical to completing a security gift (i.e. a year-end gift),

    • The donor instructs the broker to wire transfer the number of shares to be donated to the Attorney-CPA Foundation's stockbroker.
    • Ask the Donor or broker to notify the Business Office of the pending wire transfer to the Attorney-CPA Foundation's account.

Gifts of Non-readily Marketable Securities

Gifts of securities which are not readily marketable will be accepted under the following conditions:

  1. Gift of Non-readily marketable 'C' Corp. Stock

    Gifts of closely-held 'C' corporation stock will be valued on the financial statements at one dollar ($1) in the absence of financial information that would enable the determination of fair market value. The stock of a 'C' corporation with no apparent value will not be accepted.

  2. Gift of Non-readily Marketable 'S' Corp. Stock

    A 501(c)(3) non-profit organization can be a shareholder of a corporation which has elected to be taxed under the taxation rules of subchapter 'S'. However, by holding and/or selling such stock, charities may be subjected to unrelated business income tax (UBIT).

    • In receiving the 'S' stock the Attorney-CPA Foundation needs to acquire the following information:
      • Donor's adjusted basis in the stock
      • Anticipated amount and timing of cash distributions from the S Corp. for payment of UBIT
      • Anticipated distributions of appreciated property to shareholders
    • 'S' stock as funding asset for a charitable gift annuity
      • In considering accepting 'S' stock in exchange for a gift annuity, the Attorney-CPA Foundation will decrease the payments of the charitable gift annuity by the amount of the UBIT payable.

Gift of Rule 144 Stock

Stock controlled under Securities and Exchange Commission Rule Number 144 shall be held until the restriction on sale expires. Rule Number 144 refers to restricted securities and requires that a nonprofit organization and its Donor together hold restricted securities for a minimum of two years before their sale. (Restricted securities are well designated and should not be difficult to identify.)

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