As part of a demutualization process by a Life Insurance Company, Shirley and I received non-dividend paying shares in the new Company with Zero cost basis. We exchanged these shares with Williams for a Charitable Gift Annuity. By doing so... (More)

Gifts of appreciated securities are an increasingly popular and tax-wise way to accomplish your philanthropic goals. If you transfer long-term appreciated stock to a Williams life income fund, you can avoid capital gains tax.

How do you go about making a gift of appreciated securities to a life income fund to the College? If you've already discussed a life income gift with someone in the Office of Gift Planning, please follow the easy steps outlined below to make a gift of securities or a cash wire to a life income fund. If you haven't talked to someone in the Gift Planning Office about making a gift, please contact them at (413) 597-3538 or gift.planning@williams.edu. They will be able to assist you.

Gifts of Appreciated Securities & Cash Wires to Life Income Funds:

A. For Securities Held by a Bank or Broker:

If your securities are with a bank or broker, you can transfer your shares to the College by Depository Trust Company (DTC) wire by completing one of our on-line transfer letters, sending it to your broker, and submitting a copy to Kathleen L. Therrien, Trust Administrator. If you would like to access a letter for your specific gift intention, please click one of the following:

• Gift Annuity
• Pooled Income Fund I
• Pooled Income Fund II
• Pooled Income Fund III
• AnnuityTrust/Unitrust

If you would prefer to discuss your transfer with the College first, please call, write or E-Mail Kathy Therrien at the Investment Office, Williams College, Hopkins Hall, P.O. Box 67, Williamstown, Massachusetts 01267 Phone: (413)-597-4259.

The DTC method allows Williams to put your donated funds to work more quickly and to realize savings on commissions, thus making your gift more beneficial to you and the College. (Please note the gift of securities is complete when you, and your transfer agent, have delivered the securities to the appropriate life income account - this means that you no longer have control of them. Merely instructing your transfer agent to complete the gift is not enough to satisfy the IRS legal requirement.) The College absorbs all transfer costs.

B. For Securities Held by You:

If the certificates are in your possession, mail them to Williams with a stock power. If you would like to print a stock power from your computer, please go to the on-line power form by clicking here.

The certificates should be left unsigned. The stock power should be signed and left blank (the form will be filled in by Williams). Your signature should be witnessed, but it is not necessary to have it notarized or certified. If the certificates are for more shares than you wish to give, please see Split certificate below. The following sample letter of transmittal should be sent to Kathy at the address above.

I,__________ wish to
gift (the appropriate life income fund) certificate number(s) #________, #________ and #________, totaling _______ shares of common stock of the _________ Company Inc. registered in my name.

Use two envelopes. Place the certificates in one envelope and the stock power in the other. A copy of the transmittal letter should be placed in each envelope.

Of Special Interest:

Gift Value for Life Income Gifts - The gift value of the securities is the mean of the high and low price on the date one of the following occurs:

(1) The securities are transferred via DTC to the appropriate Williams life income account OR

(2) The securities are placed in a properly titled account (i.e., Williams College Pooled Income Fund I) with the corresponding tax identification number at your brokerage firm (transfers to a bank's shared charitable gift account do not accomplish the transfer) OR

(3) The securities and stock powers (in donor's name) are received by Williams for the appropriate life income fund account OR

(4) The date on the stock certificate for securities already placed in the name of the life income fund with the appropriate tax identification number and not the College's tax identification number (unless it is for a gift annuity).

Gift Splitting - If you would like your gift of stock divided among a variety of purposes at the College, please contact Kathy before initiating the process.

Depreciated Securities - In general, it is not advisable to give securities that are presently worth less than you paid for them. If the sale of stocks or bonds would result in a deductible loss, it is usually to your advantage to sell them to establish a tax loss and then donate the proceeds to Williams.

Split Certificate - You may have a certificate for more shares than you want to give to Williams. If so, send the certificate and a signed stock power in the manner described above. (Do not state the number of shares to be transferred on the stock power.) Include in your letter accompanying the shares, your social security number and instructions on the number of shares you are donating. Williams will follow your instructions and send back a new certificate for the remaining shares registered in the name of the owner of the original certificate. The new certificate can take up to six weeks to complete. (Williams cannot reissue the certificate to anyone other than the original owner of the certificate). If the transaction is handled through your broker, the broker can arrange for splitting the certificate appropriately.

Short-term Appreciation - It is usually inadvisable to make a charitable gift of appreciated securities when your capital gain is short-term (i.e., you have owned the securities twelve months or less). Such a gift to a life income fund is deductible only as a percentage of it cost basis, and not its market value.

Limits on Deductibility - The ceiling on deductibility of your gift of appreciated securities is 30% of adjusted gross income. However, you may carry over any excess as a deduction for as many as five additional years.

Closely Held Stock - Making a gift of closely held stock to a life income fund must be reviewed by the Investment Office before the College accepts them. (NOTE: Donors need to obtain a "qualified appraisal" in order to satisfy IRS regulations.)

Tender Offers - If you have stock subject to a tender offer, please be sure to consult with your tax advisor before making a gift.

Mutual Fund Shares - Transferring appreciated mutual fund shares provides the same tax benefits as a gift of appreciated securities, except there are a number of additional steps involved in the transfer and it can take up to six weeks to complete. If you are interested in this type of transfer, please contact Kathy at (413)-597-4259.

Cash Wires - If you wish to transfer cash from a US bank account (please contact Kathy on foreign account transfers), you can easily transfer to the College by sending a letter to your banker and submitting a copy to Kathy Therrien. (Life income funds have gift minimums.) If you would like to access anthe on-line cash transfer letter for your specific gift intention, please click on one of the following:

• Gift Annuity
• Pooled Income Fund I
• Pooled Income Fund II
• Pooled Income Fund III
• AnnuityTrust/Unitrust