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Appreciated Securities

University of Maine Campus photoGifts of securities stocks, bonds, treasuries, and mutual funds that have increased in value can be a way to make meaningful gifts that result in maximum tax savings. When you give qualified property that you have owned for longer than one year, you are entitled to an income tax deduction for the full value of the asset, not just the amount you paid for it. And you will never have to pay the capital gains tax that would be due if you sold the asset. You may deduct gifts of appreciated assets each year in amounts totaling up to 30% of your adjusted gross income and can use any excess deduction in as many as five future years.

If your security is held in a brokerage account, please call or ask your broker to contact us for electronic transfer instructions.

If you hold the stock certificate, mail it to the University of Maine Foundation using the following procedure:

  • Mail the unendorsed certificate by certified mail to the University of Maine Foundation, Attention: Kevin Frazier, Two Alumni Place, Orono, ME 04469-5792. Be sure to include a letter designating how you would like your gift to be used.
  • In a separate envelope, mail a signed Irrevocable Stock or Bond Power (PDF, type in form and then printout) and a signed Security Release (PDF, type in form and then printout) by ordinary first class mail to the same address as the certificate.

Please call the Foundation office (1-800-982-8503) with any questions or for further instructions on donating securities or transferring securities electronically to the Foundation.

Be sure to keep acknowledgements and other records of your gifts to assure that you can use your deductions. This is especially important for gifts of $250 or more.

When giving securities, specific advice should be obtained from your financial advisors. Additional time should be allowed for completion of such gift transactions. The value of a gift of publicly traded securities will be the average of the high and low prices on the date the gift is completed.

The University of Maine Foundation has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-800-982-8503 or via email at umainefoundation@maine.edu.

When securities have decreased in value

If the value of your securities is less than their original cost, it is usually better to sell them and make a charitable gift using the cash proceeds. You may then be able to claim tax benefits for both the capital loss and the charitable gift, effectively deducting more than the current value of the assets.