Making your gift to Wheaton
Wheaton is important to you and after careful consideration, you have decided to make a gift to the college. However, deciding on the best asset to use can be complicated. Your choice may be something as straightforward as a check or it might be somewhat more complex, such as a piece of real estate or stock in your closely held corporation.
Wheaton's experienced staff can guide you in the transfer process and answer your questions, including two of the most important issues every donor must answer: What type of asset may I use as a gift and how much income-tax deduction will my gift generate?
Most appreciated assets make viable philanthropic gifts to Wheaton. The type of asset used, however, dictates both the requirements for making the transfer and the amount of time needed to complete the gift. The value of your gift and, consequently, the amount of income-tax deduction to which it would entitle you, are determined on the day your gift is officially considered complete.
Answers to your questions are a phone call away. When making outright gifts of cash or with a credit card to Wheaton, call 1-800-896-3145, option 2. Should you decide to make your outright gift using publicly traded securities, please contact our Finance Office at (508) 286-8208 for instructions and account information. For gifts of assets other than cash or publicly traded securities, please contact the Office of Gift Planning at (508) 286-3459 or by e-mail at mckay_katherine@wheatonma.edu for additional information and instructions.
Types of assets that make good philanthropic gifts
Cash/Checks
Gifts of cash or checks are complete on the date they are hand delivered or the date they are properly mailed. In the case of mailing, the date of the postmark--not the date on the check--determines the date that the gift can be considered complete. It is especially critical near the end of the year to be sure either to hand deliver cash or checks to an authorized representative of Wheaton, or to be sure a letter is postmarked no later than December 31, if you want to claim an income-tax deduction for that year. (If sent by Federal Express or any courier other than U.S. mail, the date of the gift is the date that Wheaton receives the package.)
Credit card gifts
A gift made by credit card is considered complete on the date Wheaton receives authorization for the charge to your account.
Publicly traded securities
Securities are the most popular type of asset, other than cash, used in making gifts to Wheaton. It is not difficult to transfer securities to the college, but there are specific procedures that need to be followed, which vary with the manner in which the securities are held.
Securities held in the name of the donor
You can transfer securities held in your name in multiple ways. First, you could submit the stock to the designated transfer agent to have the shares re-registered in the name of Wheaton. If you do that, the gift will be complete on the date the shares are transferred to a Wheaton account.
Alternatively, you could deliver an endorsed stock certificate to the college in person or choose to send the gift of stock through the mail. When sending by mail, it is advisable to send an unendorsed certificate in one envelope and a properly executed stock power in another. If you send the stock certificate by mail, then the later postmark determines the effective date of the transfer. (If sent by Federal Express or any courier other than U.S. mail, the date of the gift is the date that Wheaton receives the package.)
Securities held in "street name"
If you hold stock in street name in your brokerage account rather than holding certificates in your own name, you can direct that the shares be transferred to Wheaton's account, if we maintain an account with that brokerage firm.
If not, you can make an electronic transfer using a depository trust company (DTC) transfer to a Wheaton account with the following instructions:
Merrill Lynch, DTC #5198
Wheaton College - Account #6QP-02039
41 Taunton Green
Taunton, MA 02780
(508) 823-4511
DTC wire transfers by brokers are effectively completed for charitable income-tax purposes only when the stock is placed in the Wheaton account.
Please note: Giving your broker transfer instructions will not fix the gift date. Also, simply informing your broker to make the transfer or placing the stock in the "charitable gift account" of a brokerage firm or bank is generally not sufficient to effect delivery. The gift is not considered complete until the stock is actually put in a Wheaton College account.
Determining the value of listed securities
Publicly traded securities generally are valued at the mean price (between the high and the low) on the day of transfer.
Closely held corporations
Gifts of stock of closely held corporations can be completed by the effective delivery of the shares either by mail or hand delivery. Unlike publicly traded securities, closely held stock cannot be valued by listed sales prices; its value must be established independently.
Real estate
A gift of real estate is complete when the deed is effectively delivered. What constitutes effective delivery is determined by state law and can vary from state to state. In some states, the actual delivery of the deed document itself may suffice. In others, however, delivery may relate to some other occurrence, such as the recording of the deed. Wheaton's staff can determine the correct procedure for the state in which your real estate is located.
Tangible personal property
A gift of tangible personal property--items such as works of art, coin collections, and pianos--is completed when Wheaton has control of the asset. Generally this is accomplished by actual physical delivery of the item, but may be accomplished by effective transfer of documents signifying ownership, and a signed deed of gift.
Options
Some people grant options to charitable organizations to acquire assets at a bargain price. The granting of the option itself does not give rise to an income-tax charitable deduction, but if the option is exercised, the donor is entitled to a deduction for the difference between the option price and the fair-market value. Not all options are transferable.
Limited partnership interests
Provisions in the partnership agreement often control the transfer of interests in limited partnerships. These requirements, as well as any provisions of state law, must be met to effectively transfer an interest. Because of the complexity of issues such interests present for both you and Wheaton, we suggest you consult closely with your advisors and the Wheaton Office of Gift Planning before attempting to transfer such interests.
Mutual funds
Mutual fund shares can be given with the same beneficial effect as listed and actively traded securities. The transfer of mutual funds requires that special written instructions be sent to your mutual fund company. Contact the Office of Gift Planning for written instructions and a sample letter to send to your mutual fund company. Transfer of mutual funds may take up to four weeks. The date of the gift is the date on which stocks are transferred to a Wheaton account.
When is my gift complete?
The primary consideration in determining when a gift is complete relates to the issue of ownership and control. Generally speaking, a gift is complete when you have parted irrevocably with ownership and control of an asset. The charitable income-tax deduction is determined by the value of the asset on the date the gift is delivered to Wheaton or its account. An important element in this process is the acceptance of the gift by Wheaton.
While the rule is relatively easy to state, it may be somewhat difficult to determine exactly when you have parted with control of certain assets and Wheaton has accepted them. The answer depends on the type of asset you give and the method of delivery selected. Hopefully, this brief explanation on the kinds of assets Wheaton can accept as a gift and the method needed to transfer selected types of assets will help you determine when your gift is complete for federal income-tax purposes.
We are here to help
We have attempted to highlight practical considerations regarding the contribution of several popular types of assets used to fund charitable gifts, but you may have specific questions not addressed here. Please feel free to call us at any time at (508) 286-3459. It is our pleasure to work with you and your advisors to complete gifts of all types of assets to Wheaton.
This page is maintained by The Office of Gift Planning. Last updated on 12/8/06.
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