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A Guide for Donors
Gifts of Marketable Securities
&
Mutual Fund Accounts
A Guide for Donors
Gifts of Marketable Securities
And Mutual Fund Accounts
Each year, many donors choose to make gifts for
the benefit of James Madison University using appreciated stock or mutual
funds. Such gifts often offer donors
greater tax-wise advantages than gifts of cash or other resources. There are just a few steps to follow to
ensure that your wishes are met. This Guide
for Donors is intended to assist you in making a gift of marketable
securities or shares of a mutual fund account.
The first three sections of the Guide
address each of the ways to make a gift of marketable securities (such as the
common stock of a publicly traded corporation). Of the several methods presented, the method you choose will
depend on the location and form of the securities you own. The fourth section focuses on gifts
of mutual fund account shares.
The Guide also includes a Sample Transmittal
Letter to accompany the Stock/Bond Power form, a Sample Letter of
Instruction to your broker, and a ready-to-execute Stock/Bond Power
form for your convenience.
Please note that all charitable gifts for the
benefit of the University need to be made through the James Madison
University Foundation, Inc.
The First Step – A call to advise the JMU Foundation of your
intentions to transfer stock or
mutual fund shares. You can do this by calling the office toll
free at 888.303.9939.
When you call, you should be prepared to provide the following
information: 1)
A description of
the gift, including the number of shares and the name of the company. 2)
Any restrictions
or designations you wish to place on the use of the gift. 3)
The date of the transfer.
â
I)
A Gift of Marketable
Securities.
Method 1 – The Donor’s securities are held on account at a
brokerage firm at which the JMU
Foundation maintains an
account.
The JMU Foundation maintains an account at several
brokerage firms, and they are listed below.
If your securities are located with one of these brokerage firms, then
please follow the instructions below.
The brokerage firms with a JMU Foundation Account
are:
Ø
A.G. Edwards
·
Contact: Marshall F. Kiser
·
Toll-Free: 800.996.2774
Ø
Davenport
·
Contact: Tom Johnson
·
Toll-Free: 800.846.6666
Ø
Paine Webber
·
Contact: Paine Webber
·
Toll-Free: 800.272.0027
Ø
RBC Dain Rauscher
·
Contact: Bill Loomis
·
Toll-Free: 800.999.8922
Ø
Scott &
Stringfellow
·
Contact: Mike Beahm
·
Toll-Free: 800.768.2882
Ø
Wachovia Securities
·
Contact: Wes Graves
·
Toll-Free: 800.879.9926
Steps To Take. . .
1. The
First Step - The key is to call and alert the JMU
Foundation before you initiate the transfer (see the front page). When you call, please ask for the JMU
Foundation Account Number associated with the particular brokerage firm. Then, direct your broker to transfer the
securities to the JMU Foundation account maintained by the particular firm.
2. Value of the Gift - The
securities will be valued at the average of the high and low prices on the date
the transfer to the JMU Foundation Account is completed.
3. Confirmation
of the Gift - Once the transfer is
complete, you will be contacted by James Madison University to confirm that the
gift was received.
II)
A Gift of Marketable
Securities.
Method 2 – The Donor’s securities are held on account at a
brokerage firm at which the JMU
Foundation does not
maintain an account.
If your securities are held by your brokerage firm
or bank and the JMU Foundation does not maintain an account with that
firm or bank, then please follow these instructions:
Steps
To Take. . . 1. The
First Step - The key is to alert the JMU Foundation before
you initiate the transfer (see the front page). 2. The
Crucial Next Step -- Then, it is important for you to advise your
broker to direct that the transfer of securities be credited to the JMU
Foundation account maintained by Wachovia Securities. a.
In your
communication with your broker, please ask your broker to transfer the
securities to: Wachovia Securities - DTC Account #141 Attention: Wes Graves 2011
Evelyn Byrd Avenue Harrisonburg,
VA 22801 Toll-Free
– 800.879-9926 If you choose to contact
your broker in writing, a Sample Letter of Instruction to
your broker is included in the Appendix of this Guide. b. At
the same time, alert your broker to provide Wes Graves (or Ann Ring)
at Wachovia Securities (800-879-9926) with the following
information:
i.
Your name (as the donor).
ii.
Any restrictions or designations on the use of
the gift.
iii.
The expected date of the transfer. c. Advise
your broker to direct Wachovia Securities to credit the transfer to the
Wachovia Securities Account for: James
Madison University Foundation, Inc. 3. Value of the Gift -
The securities will be valued at the average of the high and low prices on
the date the transfer to the JMU Foundation Account is completed. 4. Confirmation
of the Gift - Once the transfer
is complete, you will be contacted by James Madison University to confirm
the gift was received.
III)
A Gift of Marketable Securities.
Method 3 – The Donor is holding the actual stock certificates
and plans to deliver the securities
in person, or send them by
mail.
If you
are planning to deliver the actual stock certificates in person or by mail, please
follow these instructions:
Steps
To Take. . . 1) Do
not fill in the back of the certificates. 2) Transmittal
Letter – Please prepare a brief letter to state that you intend to give the
shares to the JMU Foundation, specifying the number of shares and the name
of the company. Also, if there is any restriction or designation you wish
to place on the use of the gift, include that information in the letter.
(A Sample Transmittal Letter is included with this Guide.) 3) Stock/Bond
Power form is required – On the Stock/Bond Power
form, you will need to include the date, number of shares, name of company,
the certificate number(s), and your signature. (A ready-to-execute
Stock/Bond Power form is included with this Guide.) Please note the following
directions: a.
Do not fill in the pair of lines at the top of
the form. b. You
must sign the form only in the presence of someone who
can provide a Medallion Guarantee.
At any commercial bank, someone is available to provide a Medallion
Guarantee. It is not enough for you
to have the signature witnessed by a Notary Public. 4) For
in-person deliveries – The Office of the JMU Foundation is located on
the first floor of 61 Court Square in Harrisonburg, Virginia. The Office is open on weekdays from 8
a.m. to 5 p.m. 5) For
deliveries by mail – Please prepare two envelopes for the
U.S. Postal Service and send both of them by certified mail. a.
In the first envelope, please include the unsigned certificates;
and b.
In the second envelope, please include the transmittal letter
(described above), and the Medallion Guaranteed Stock Power form. c.
The address is: JMU Foundation, Inc. 61-B Court Square - MSC 8501 Harrisonburg, VA 22807 6) Value of the Gift – If
you hand-deliver the documents, then the securities will be valued at the
average of the high and low prices on the date the documents are received
at the JMU Foundation office. If
you deliver the documents by mail, the valuation day will be the date of
the postmark by the U.S. Postal Service.
If you use a private delivery company, the valuation day will be the
date on which the JMU Foundation receives the securities. 7)
Confirmation of the Gift – If you delivered the documents by mail or private delivery company,
you will be contacted by James Madison University to confirm that the gift
was received.
IV)
A Gift of Mutual Fund
Account Shares.
One Method – The Donor intends to
make a gift of shares from
a mutual fund account.
This section focuses on gifts of mutual fund
accounts shares. The process is
slightly different from the steps needed for transfers of marketable
securities. For gifts of mutual fund
shares, please follow these instructions:
Steps
To Take. . . 1) The
First Step - The key is to alert the JMU Foundation before
you initiate the transfer (see the front page). 2) The
Next Call To Make – You then need to contact the mutual fund
company for the particular requirements the company has for transferring
shares to the JMU Foundation. a. In
most cases, the JMU Foundation will need to open an account in its own name
with the particular mutual fund company so that the gift of these shares
can be transferred into the JMU Foundation account. b. Since
it is likely that the JMU Foundation will need to establish an account, it
is especially important that you contact the JMU Foundation office toll-free
at 888-303-9939 to alert the Foundation of your desire to make a gift
of mutual fund shares. 3) Crucial
Next Step -- Then, it is important for you to advise your
broker or the mutual fund administrator to credit the transfer to the JMU
Foundation account established with the particular fund company. 4) Value of the Gift -
The value of a gift of mutual funds will be the Net Asset Value (NAV) of
the mutual fund as of the end of the day on the date the transfer to the
JMU Foundation is completed. 5) Confirmation
of the Gift - Once the transfer
is complete, you will be contacted by James Madison University to confirm
that the gift was received.
Appendix – Sample Letters and a Stock Power
Form.
In this Appendix, you will find three documents to assist
you as you prepare to make a gift for the benefit of James Madison University
using either marketable securities or mutual fund account shares.
Sample Letter of Instruction to your Broker
(See Section II – Method 2 for Gifts of Marketable
Securities)
Name of
Donor(s)
Address
of Donor(s)
Date
Name of
Broker
Name of
Brokerage Firm
Street
Address
City,
State ZIP Code
Name of
Donor’s Brokerage Account: ______________________________
Brokerage
Account Number: ______________________________
Dear
______________________:
Upon
receipt of this letter, I (We—if a joint account) instruct Name of
Brokerage Firm to transfer from my (our) above referenced account
shares of common stock I (We) own.
Specifically, please transfer: Number
of Shares in Name of Company to James Madison
University Foundation, Inc.
Please
transfer these shares electronically to the JMU Foundation’s brokerage account
at Wachovia Securities using the DTC Account # 141 –
Attention: Wes Graves (Toll-Free
800-879-9926). The address is 2011
Evelyn Byrd Avenue – Harrisonburg, VA
22801.
The
transfer should be credited to the account maintained Wachovia Securities for
the JMU Foundation.
Thank
you for your assistance in making this transfer.
Sincerely,
_______________________
Donor(s)
cc: Thomas
Schaeffer
Executive Vice President
JMU Foundation, Inc.
MSC 8501
Harrisonburg, VA 22807
Sample Transmittal Letter
(See Section III – Method 3 for Gifts of
Marketable Securities)
Name of
Donor(s)
Address
of Donor(s)
Date
Thomas
Schaeffer
Executive
Vice President
JMU
Foundation, Inc.
MSC 8501
Harrisonburg,
VA 22807
Dear
Tom,
I am
writing to advise you that I intend to make a gift to the JMU Foundation for
the benefit of James Madison University using stock that I own; specifically
____________________ shares of __________________________________ [please
include here the number of shares and the name of the company).
I have
the actual stock certificates and will deliver them to the JMU Foundation
office in person (or, by mail – as the case may be). I understand that I will need to execute a Stock/Bond Power form,
with my signature on the form Medallion Guaranteed.
I ask that
this gift be directed to the JMU Foundation for the benefit of James Madison
University. I direct that this gift be
used as follow:
£ JMU Endowment, with no restrictions or
designations.
£ JMU Endowment, with the following
restrictions (or designations):
_____________________________________________________________
£ Other:
_____________________________________________________________
If you
have any questions, please do not hesitate to call me, at ________________
(please include a telephone number at which you can be contacted during the
day).
Thank
you.
Sincerely,
_________________________
Name of
Donor(s)
Irrevocable Stock/Bond Power
For value received, the undersigned do(es) here sell,
assign, and transfer to: (please
leave these lines blank)
__________________________________________
________________________________________________
IF STOCK, THEN PLEASE COMPLETE THIS SECTION
IF BONDS, THEN PLEASE COMPLETE THIS SECTION
The undersigned do(es) here irrevocably constitute and appoint First Clearing Corporation attorney to transfer the said stock or bond(s), as the case may be, on the books of the above-named Company, with full power of substitution in the premises.
___________________________________________ ___________________________________________
Medallion Guarantee:
