Howard University - Stock/Securities

Your contribution of long-term appreciated securities not only assists Howard in meeting its financial and educational goals, but also relieves you from paying capital gains tax on those securities and entitles you give to a charitable organization equal to the fair market value of the securities, up to 30 percent of your adjusted gross income for that year. Because you avoid the capital gains tax, it is usually more advantageous to contribute appreciated securities directly rather than to sell them and give the proceeds of your sale.

Securities may be transferred to Howard via electronic transfer, mailing certificate or hand delivery.

Electronic Transfer
Electronic transfer is the most popular and efficient way to transfer securities to Howard University. The transfer is completed through a free delivery, which means that Howard gets 100 percent of the value of the transfer and both Howard and the contributor avoid paying commissions to a broker.

If your stock is held by a broker, notify the broker that you wish to make a gift of securities to Howard University. Your broker will need written authorization from you before he or she can make the transfer. Be sure to specify the name of the stock that you want to transfer, the number of shares, and where you would like your gift to be designated when it reaches Howard.

Once you have authorized the transfer, ask your broker to contact the Office of Planned Giving at (202) 238-2340. Our office will give your broker complete transfer instructions. Even if you have donated securities in the past, be sure your broker contacts the Office of Planned Giving before the transfer is made, as transfer instructions may change from year to year.

Mailing Stock Certificates
If your securities are not held by a broker you can either mail or hand deliver the certificates directly to the Office of Planned Giving within the Division of University Advancement.

If mailing a gift of securities, send your unendorsed certificate(s) and a cover letter (including your name, address and purpose of the gift) in one envelope. In a second envelope, send a signed, signature-guaranteed stock power. We strongly recommend using registered mail to forward your certificates and stock power. A stock power form can be obtained from your local bank or by calling the Office of Planned Giving at (202) 238-2340.

Please do not mail endorsed certificates. Once the certificate is endorsed, it is legal tender and can be exchanged by anyone.

Hand Delivery
Certificates may also be given to a University Development Officer or delivered to the Office of Planned Giving.

It is strongly recommended that certificates not be sent to a transfer agent for registering in the University's name. This procedure is unnecessary and results in needless delay of the transfer.

If you own securities that have dropped in value, it is usually best to sell them and give the cash proceeds. That way, you can claim the capital loss and deduct the charitable gift.

For information regarding the valuation of stocks and bonds or gift crediting, please contact Office of Planned Giving in the Division of University Advancement toll free at (877) 860-GIFT (877-860-4438) or (202) 238-2340.