Gifts of Securities
Overview
Northwestern University relies heavily on gift support from alumni, parents and friends - for both current programs and future endeavors. Donors may direct their gifts to support a specific program or project or for the general use of the University. Northwestern offers a range of "deferred giving options" including annuities and trusts which provide the donor with current income as well as a charitable deduction while supporting the University's education and research missions. The Development Office can provide information on the University's needs and the tax benefits of donations to NU.
Gifts of appreciated securities provide financial support to NU as well as tax benefits for the donor. If securities have been held for more than one year, the charitable deduction is the current fair market value. If the donated securities have gone up in value over the donor's holding period, a gift to NU may be made without incurring a liability for capital gains taxes.
Procedures
The Investment Office coordinates all gifts of securities for Northwestern University. Please contact Lorraine Dostal at 847-491-8398 (email: dostal@northwestern.edu or fax 847-491-4059) for assistance and information.
In order to provide the appropriate tax receipts and acknowledgements, NU needs the following information:
• Donor's name and address
• Securities donated - name and number of shares
• Delivery method - electronic delivery from a bank or broker or delivery of physical stock certificates
• Agent information - name and phone number of agent bank or broker
• Valuation date - securities are valued at transfer of ownership or control
• Purpose - does this gift benefit a specific program or project at Northwestern?
Many agents require written instructions to transfer securities to a charitable organization. These instructions also provide a record for tax purposes. Donors can use the following "sample letters of instruction" to give instructions to their banks, brokers or mutual fund advisors:
Gifts from IRA accounts (Please contact the Investment Office for further information)
Cash gifts (Please contact the Investment Office for further information)
Charitable gifts must be delivered before the close of business on December 31 in order to be allowed as an income tax deduction in that year. This makes December a very busy time for all agent banks and brokers. NU recommends that donors plan in advance to complete their charitable giving programs before the last minute of the business year.
Delivery Methods - Electronic Delivery
If securities are held in electronic form in a brokerage account or a bank trust account, the agent will need authorization to transfer the securities and delivery instructions for Northwestern University. NU's current custodian is Northern Trust Chicago and the delivery instructions are
Northern Trust Chicago
DTC # 2669
Northwestern University Acct # 26-07242
Tax ID 36-2167817
See the sample letters of instruction.
It is important to notify NU's Investment Office regarding gifts of securities so we may further instruct Northern Trust. If Northern Trust is not expecting a delivery, they may reject the securities and return them to the sender. Please phone, fax or email Lorraine Dostal to notify Northwestern of your gift (phone 847- 491-8398, fax 847- 491-4059 e-mail dostal@northwestern.edu).
Delivery Methods - Paper Certificates
Every stock certificate has a "transfer form" printed on the back. If a donor has many stock certificates for the same company, it may be more convenient to sign a separate "Stock Assignment" form instead of signing each certificate individually. If shares of several companies are donated, a separate "transfer form" must be signed for each company.
In the space following "I/we assign unto__________________", the donor should write "Northwestern University". In the signature block at the bottom of the form, the donor should sign his/her name exactly as printed on the face of the stock certificate. If shares are held in joint tenancy, both husband and wife must sign the form. It is not necessary to fill in any other information or to obtain a "signature guarantee".
Please note: Northwestern University is the legal entity. The Medical School, Law School, Wildcat Fund, KGSM, Smith Professorship, Jones Scholarship (etc and so forth) are not legal entities. They are "business units" or accounting entities that exist within NU's financial accounting system. This language should not appear on stock transfer forms, but it is used within the University to correctly distribute all gifts.
Stock and bond certificates may be delivered directly to the Investment Office at 1800 Sherman Avenue, Suite 400, Evanston, IL 60201 along with a letter or memo identifying the donor and indicating the purpose of the gift. Certified mail or Fedx is recommended. If you have questions, please call Lorraine Dostal 847-491-8398 or email dostal@northwestern.edu.
Delivery Methods - Mutual Fund Shares
Mutual fund shares usually cannot be transferred via DTC. If shares are held in a brokerage account, please ask your broker to phone Northwestern to arrange the transfer. If your shares are held in an account with the mutual fund company, ask them for a "transfer of account " form for gifting shares to a charity. The mutual fund will open an account for Northwestern University and complete your gift by moving shares from your account to NU's account. We also provide a "sample letter of instruction" for transfer of mutual fund shares. Please notify the Investment Office regarding your gift and its purpose.
Value of Gifts of Securities
The value of a gift of securities is calculated by averaging the high and low prices on the gift valuation date. For bonds, we use the average of the Bid/Ask. For mutual funds, we use NAV (net asset value). The valuation date is the date securities are transferred from donor to NU. For DTC deliveries and for mutual fund transfers, the valuation date is the date shares are received in NU's account. For physical certificates, the valuation date is the postmark or mailing date or the date securities are hand-delivered to a representative of the University.
Receipts and Acknowledgments
Donors receive an initial acknowledgment from the Investment Office within 5 working days from delivery. A University Gift Receipt is issued by the Development Office within 2-3 weeks for tax purposes.
Cash Gifts
The University accepts checks and credit card payments for donations to NU. If you wish to transfer a larger donation from your bank or brokerage account by wire transfer, NU can provide "Fed Wire Instructions" for our receiving bank account. The sending bank will charge a fee for this service.