ACES Office of Advancement

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Securities

Income Tax Consequences

Gifts of long-term capital gain property (securities held longer than twelve months) may be a way to avoid a capital gains tax liability. A charitable deduction equal to the fair market value of the assets on the date of transfer is available up to the maximum deduction of 30% of the donor's adjusted gross income in any one year. Gifts in excess of the 30% level may be carried forward for five years.

Gifts of short-term capital gain property (securities held less than 12 months) are treated the same way as gifts of cash, but the deduction value is equal to the basis of the property.

Estate Tax Consequences

Upon transfer to the charity, gifts of securities are excluded from the donor's estate for purposes of estate-tax calculations. Moreover, these gifts are not subject to the IRS three-year look-back period on lifetime gifts from the estate.

Making a Security Gift

Gifts of securities may be made via electronic transfer directly from the custodian of the security to the UIF's custodian. The UIF's Office of Gift Planning and Trust Services can provide electronic transfer instructions to you or your broker; call them directly at 217-244-0473 or call the College of ACES Office of Advancement at 217-333-9355. To help track the transfer of funds, please identify the type of security being transferred, the number of units, and the date of transfer to ensure that the securities are deposited into the appropriate account. Due to federal privacy regulations, a name is often not associated with the transfer. The UIF will also accept paper certificates.

Questions?

Contact the College of ACES Office of Advancement at 217-333-9355 and ask to speak with a major gift officer.