Gifts of appreciated securities
Support the U of M with gifts of appreciated stocks, bonds, or mutual fund shares

Gifts of appreciated stocks, bonds, or mutual fund shares can be a tax-advantaged way to provide immediate support for the University of Minnesota. Gifts of any size benefit students, faculty, research, and programs.

As with any gift to the University, you may direct your gift to a specific campus, college, or program. Your gift will also be included in Driven: The University of Minnesota Campaign.

Benefits

By giving the University appreciated securities that you’ve held for more than a year, you receive a double tax benefit:

  • You avoid capital gains tax on the appreciation that would be due upon sale.
  • You can receive a charitable income tax deduction for the current fair market value of the property - up to 30 percent of adjusted gross income.
  • You can carry forward any unclaimed portion of the deduction for up to five additional years, subject to the annual limit.

Example

John would like to make a gift of $10,000. He is considering giving cash or appreciated stock that he purchased for $2,000. This chart shows his potential tax savings for giving stock:

  Cash Appreciated stock
Fair market value $10,000 $10,000
Capital gains tax saved(15%) 0 $1,200
Income taxes saved(24%)* $2,400 $2,400
After-tax cost of gift $7,600 $6,400

*If John itemizes deductions

Transferring securities held at a brokerage firm

To transfer shares held with a brokerage firm, provide the following information to your broker:

Account Registration: University of Minnesota Foundation
RBC Wealth Management
Account #30875055 DTC #0235
Attention: Mike Thorn
601 Carlson Parkway, Suite 500
Minnetonka, MN 55305 952-476-3741

Other transfers: If you would like to transfer mutual funds, bonds, stock certificates, or shares held with transfer agents, please contact us.

Gifts at year-end

If you wish to make a gift of securities for the current tax year, start early to ensure that your gift will be completed by December 31. While the foundation receives some electronic transfers within days of when the gift was initiated, longer delays are possible, especially at year-end. Gifts of mutual funds take longer than stock gifts, often several weeks. Contact your broker for their deadline to complete transfers by year-end.

Notifying the University

The U of M Foundation often receives gifts of securities without any donor-identifying information. If you plan to transfer securities, please contact the foundation and provide the following information:

  • Type/number of shares you are transferring
  • Approximate date of transfer
  • Gift designation instructions

 

DISCLAIMER

Information on this website is not intended as legal or tax advice. For information on how any gift may affect your tax situation, please consult with your own professional advisor.