Donate Securities
How to Donate Securities
Introduction: Donating appreciated securities to tax-exempt organizations such as the Archdiocese of St. Louis, its parishes or agencies can produce tax-advantaged charitable deductions for the donor.
Most securities donated to parishes and agencies are either common stocks or mutual funds. Common stocks are held in two forms: stock certificates or “book entry.” Mutual funds are almost always held in book entry form. People are probably more familiar with stock certificates which show the name of the corporation, the number of shares and the owner’s name. In recent years, there has been a trend toward paperless proof of ownership known as “book entry.” The owner’s financial institution keeps a record of how much of each stock is owned by each of its customers, and holds that stock in “street name,” that is, the name of the registered financial institution. Generally, holding securities in street name provides a higher level of safety and can expedite its sale or transfer of ownership.
The Archdiocese has a policy of liquidating all donated securities upon receipt and distributing the proceeds to the beneficiary agency or parish shortly after receipt.
Procedures: Few companies today continue to issue physical stock certificates. Paper certificates should be delivered by the donor to:
Archdiocesan Finance Office
The St. Louis Archdiocesan Fund
20 Archbishop May Drive
St. Louis, MO 63119
The back of the certificate should be signed by the owner exactly as it appears on the face. The donor should not write the name of the donor organization on the certificate. Doing so may unnecessarily delay the gift. On a separate sheet (not the certificate) please show the donor(s) Social Security Number and Date of Birth. This data is required for liquidation.
If stock is to be transferred from a broker, mutual fund or commercial bank or trust company, the broker should be provided with the following instructions:
DTC: Smith Moore
DTC Participant #0235
Credit account #89103740Contact: Smith Moore & Co.
Debbie Manley
7777 Bonhomme
St. Louis, MO 63105
Phone: 314.446.1673
Email: [email protected]
To assure that a donor’s gift is credited to the desired parish or agency, the donor is requested to send notice of the donation to the Archdiocesan Finance Office, Attn. Patricia Griffaw. Notice of a gift may be emailed to [email protected], or faxed to 314.792.7867. Further information may be obtained by contacting Patricia Griffaw at 314.792.7123, or Rachel Mooney at 314.792.7144.
Valuation of Gift for Tax Purposes. The donor should be aware of the date on which the stock is valued for purposes of getting a charitable tax deduction. The Archdiocesan Finance Office will issue the IRS-required tax substantiation letter, following these rules.
If the donor unconditionally delivers in person a properly endorsed certificate to the donee organization or the Finance Office, the gift is completed and valued as of the date of delivery.
If the donor unconditionally mails a properly endorsed certificate, the gift is completed on the date of mailing, provided the certificate is received in the ordinary course of the mail. A word of advice: Before mailing, the donor should write “Smith, Moore & Co.” on the line of the stock power that precedes the word “Attorney.” This minimizes the possibility of fraud.
If the donor delivers the certificate to his financial representative or to the issuing corporation as his agent, for transfer into the donee’s name, the gift is completed when the stock is transferred on the corporation’s books. Similarly, the donation of stock held in book entry form is completed when the stock is transferred to an account of the Archdiocese.