A gift of appreciated securities that you have held for more than one year is frequently the most economical way to give. You will be eligible to take a federal income tax deduction equal to the fair market value of the stock on the date of the gift for up to 30 percent of your adjusted gross income and will avoid tax on the capital gain. Following is specific information about how to give securities or mutual fund shares to Yale:
Securities held by your bank or broker
Please notify your bank or broker that you are making a gift of securities to Yale and instruct your bank or broker to either telephone Donated Securities at 203.432.4107 or e-mail email@example.com for instructions. Please tell your bank or broker not to proceed until speaking with a representative in that office.
Or, you may visit Give Now to make a donation of securities.
Securities certificates held by you
Please send unendorsed certificates by mail, along with a letter giving your name, address, Yale College class or Yale school affiliation, the purpose of your gift, and securities cost-basis information to:
Office of Development
P.O. Box 805
New Haven, Connecticut 06503-0805
In a separate envelope, please mail to the same address a stock power for each certificate, along with a copy of your letter. Do not complete any information on the stock power other than your signature and the date and obtain a medallion signature guarantee. If the certificate represents a greater number of shares than you intend to give to Yale, please enclose a note requesting the return of a new stock certificate with the non-gift balance and include your social security number, full name, address, and phone number.
Your bank or broker can supply you with blank stock powers, or Donated Securities will be happy to send them to you. For most expedient handling, do not fill in Yale’s name as transferee on either the stock certificate or the stock power, and please do not send stock certificates to a transfer agent for transfer into Yale’s name.
Mutual fund shares
Please contact Donated Securities at 203.432.4107 with information about your mutual fund shares. The procedure for transferring shares is established by the mutual fund company, and Donated Securities will be able to assist you with the appropriate letters of instruction.
Excise tax on donated securities
As of July 1, 2018, the Tax Cuts and Jobs Act of 2017 imposes on Yale (and a limited number of other colleges and universities) a 1.4 percent excise tax on net investment income. Yale’s income includes the difference between a donor’s tax basis (typically the original purchase price) and the net proceeds Yale receives upon sale of donated securities. To assist in calculating Yale’s tax liability, we need to collect information about the tax basis of all donated securities.