Stocks

There are several investment vehicles through which UMB accepts donations, including appreciated stock, mututal funds, and other investment assets. Shares and cash gifts can either be given outright, or given as income-producing gifts.

Read below to learn about each investment vehicle type, or learn more about income-producing gifts.

Stock Gifts

Giving appreciated stocks and mutual funds (owned for more than one year) immediately adds a tax advantage over making the same gift in cash. The income-tax benefit is identical to that of cash: the donor can deduct the Fair Market Value (FMV) of the gift if they choose to itemize deductions. Giving stocks and mutual funds, however, provides the added benefit that the Long-Term Capital Gain (LTCG) is not recognized on their tax return, so the donor avoids any LTCG tax due on the appreciation. Put another way, there is virtually no other use than charitable giving that a taxpayer/shareholder can realize 100 percent of the value of their asset; the shareholder must first sell the shares to access their value, triggering LTCG tax.

Savvy Donor: Four Reasons Not to Give Cash if You Have Appreciated Stock

If giving appreciated securities yields additional tax savings for the donor, why don’t more donors give stock and mutual funds?

A 2016 study of high net-worth donors found less than 6 percent use stocks or mutual funds in their giving. The main reason is probably inconvenience—giving cash is simpler and faster. To give stock, a donor must instruct the investment company to transfer the shares, and the transfer usually takes one to three days. Giving mutual fund shares may involve additional steps, and it is common for mutual fund gifts to take one to six weeks. Thus, year-end stock gifts should be initiated prior to Dec. 27, and year-end mutual fund gifts should be initiated prior to Nov. 15.

To initiate a gift of stock or mutual funds to the University of Maryland Baltimore Foundation, for the benefit of UMB or any of its seven schools, please use our stock transfer instructions and contact us if you would like assistance or have questions.

Instructions for Giving Stocks

Please note that you must contact the Office of Philanthropy's Operations team prior to making a gift of securities to ensure receipt of your gift. Without advance notification, we cannot guarantee that Northern Trust will accept the transfer. Thank you for your cooperation.

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