Webster University: Development

Gift Planning – Securities

Publicly traded stocks are gladly accepted by Webster and can create a tax-wise charitable gift. Securities owned a minimum of one year plus one day are allowed a charitable deduction for the asset’s current fair market value and are not subject to capital gain.

For example, shares of stock originally purchased for $1,000 and currently worth $2,000 are given to Webster. A charitable deduction of $2,000 is claimed. Additionally, no capital gain is due on the $1,000 increase in the stock’s value.

Financial Impact Of Above Securities Gift
Original cost of security	$1,000
Current Market Value	$2,000

Gift of Security to Webster University	$2,000
Charitable Deduction	$2,000
Benefit of charitable deduction (35% marginal tax rate)	($ 700)
Benefit of bypassed capital gain ($1,000 gain @ 15% capital gain rate)	($ 150)
After tax cost of $2,000 gift	$1,150

Securities can also fund charitable gift annuities and charitable remainder trusts.

Most often securities are transferred to Webster electronically. Please contact Ken Nickless, Gift Planning Officer, for electronic transfer instructions.

Webster also accepts stock certificates. We suggest that you never endorse a certificate as the endorsed certificate can be redeemed by any individual. Rather, mail the unendorsed certificate in one envelope. Send a signed stock power in a separate envelope. Both envelopes can be mailed to:

Webster University, Office of Gift Planning
470 E. Lockwood Avenue
St. Louis, MO 63119

Stock Options
Stock options, either in public or private corporations, are welcomed by Webster. As different types of options exist and their treatment can vary, please contact our gift planning staff to discuss your specific situation.

For more information on gifts of stock or securities contact:
Ken Nickless - Gift Planning Officer at 314.968.7146.

Webster University Development & Alumni Programs
Phone: 314.968.7142	Fax: 314.968.7108