Luther College Guide to Making Gifts of Appreciated Property
Making gifts to Luther using appreciated property has become increasingly popular among alumni and friends of the college. The most common gifts of appreciated property include common stocks, mutual funds, and real property. Gifts like these can benefit Luther and, at the same time, generate a tax savings for the donor. In many cases, a donor can avoid capital gains tax by transferring appreciated assets to Luther College instead of selling them and donating the proceeds.
This guide describes the process for making gifts of appreciated property to Luther College. If you have questions concerning legal matters, tax implications, or investments, please consult your financial planner or attorney.
To make a gift of publicly traded stocks or bonds held in a brokerage firm account
- Phone Arleen Orvis, Luther College controller, at (800) 258-8437, or fax her at (563-387-2683), or e-mail her at orvisarl@luther.edu to advise her of the transfer, so the college can credit you with your gift. When you contact Arleen Orvis, give her the following information:
- Names of the corporations and the number of shares or bonds you are giving
- Name and phone number of your broker
- The designation of the gift (e.g., Annual Fund or a restricted fund)
- Send a letter of instruction to your broker with a full description of the securities you wish to give to Luther and your gift’s intended purpose, or designation. Please request the broker transfer the securities to the following Luther College Charles Schwab account:
Charles Schwab, DTC# 0164, Code 40, for the benefit of Luther College Donations Account# 6194-9889
- Instruct your broker not to sell the securities. (If the securities are sold and the sale proceeds transferred to Luther, you will have to report any capital gains and pay any taxes due.) If your broker has questions, he/she should call Arleen Orvis, controller, or Peggy Lensing, assistant controller, at (800) 258-8437, or Jim Anderson, director of estate and gift planning, at (800) 225-8664.
- Send to Arleen Orvis at Luther College, 700 College Drive, Decorah, IA 52101, a copy of the letter of instructions you sent to your broker.
Please Note: Luther College prefers that donors transfer stocks or bonds to its Charles Schwab account. However, accounts are maintained with other brokerage firms such as:
- Piper Jaffrey
- Merrill Lynch
- RBC Dain Rauscher
If you prefer to use one of the above firms, please call Arleen Orvis at (800) 258-8437 for further account information.
To make a gift of stock or bond certificates you hold
- In one envelope send the unsigned stock or bond certificate(s) by registered mail (with return receipt requested) to the College to the attention of Arleen Orvis, controller, Luther College, 700 College Drive, Decorah, IA 52101. Include with the stock or bond certificate(s) a cover letter that includes your name, address, and purpose or designation of your gift.
- In a second envelope send to the College to the attention of Arleen Orvis:
- One blank stock or bond power form for each company whose stock or bonds you are transferring. Only the signature line should be filled in, with the signature(s) exactly matching the name(s) that appear on the face of the certificates. An officer of a commercial bank (member FDIC) must Signature Guarantee the owner’s signature or owners’ signatures on the stock power form.
- One Charles Schwab third-party release form for each company whose stock or bonds you are giving. Only the signature lines and “print name” lines should be filled in, with the signature(s) exactly matching the names(s) that appear on the face of the certificates. A notary must notarize the owner(s) signature(s) on the release form.
To make a gift of mutual funds, dividend reinvestment plans, or other forms of securities
Due to the variation in transfer procedures that different companies have for donations of other forms of securities, such as mutual funds and dividend reinvestment plans, please contact Arleen Orvis or the Development Office for details. You may also contact Jim Anderson, director of estate and gift planning, if you are considering a donation of real estate to Luther.
Please Note: If the securities you wish to donate to Luther are not currently worth more than your cost basis, please check with the Development Office before transferring the securities. In some cases it may be more advantageous for you to sell the securities and donate the proceeds to Luther.
Thank you for your interest in, and your gifts to, Luther College. If you have additional questions, feel free to contact the Development Office.