Stocks and Other Securities
Why Give Stocks or Mutual Funds?
If you intend to make a contribution to Fairmont State, giving shares of stock or mutual funds may allow you to take full advantage of your investment earnings by avoiding the tax on your capital gains. In addition, a gift of stock held more than one year may qualify for a charitable income tax deduction equal to the security's full fair-market value. If you were to sell the stock to obtain cash for a charitable gift, you may be required to pay tax on your capital gains.
Appreciated securities may be used for a contribution of any size or purpose, including:
- An annual gift of operating support for Fairmont State University.
- A major gift to create an endowment or to fund a building project.
- A payment on a pledge to Fairmont State Foundation.
- A planned gift such as a charitable trust or gift annuity.
The Fairmont State Foundation will direct proceeds from the sale of these assets to any school or program you choose.
Gifts of stocks and mutual funds are coordinated by Jesse Isner, Controller for Fairmont State Foundation.
How can I make an outright gift of stock via electronic transfer?
Giving stock through electronic transfer is the easiest method when a donor maintains holdings in a brokered account. Depository Trust Company, or DTC, is the clearinghouse for electronic security transfers. Each brokerage firm has a specific DTC number.
Please contact Jesse Isner, Controller for Fairmont State Foundation, before you make the transfer so that the Foundation can make arrangements with its broker to receive the stock contribution.
Stock Certificates and Stock Powers:
If you donate a stock certificate that is in your name, a letter of intent must be included. Under separate cover, please send a signed stock power. The Foundation does not recommend sending signed certificates.
How to give Mutual Fund Shares:
The process of giving mutual fund shares takes a few more steps and more time to complete. In general, mutual fund companies do not allow shareholders to transfer mutual fund shares outside of the fund. The shares must be transferred to an account within the fund created for the Foundation.
Using a Share Transfer Form:
When giving a gift of stock, mutual fund companies will provide a form called a "Share Transfer Form" that will authorize the transfer stock from your account to an account opened for the Foundation. The form must be completed by you and the Foundation. You may leave the "transfer to" portion of the form blank and allow the Foundation to fill it in. If you wish to designate your gift for a specific area, please note this in a letter accompanying the form when it is sent to the Foundation.
All persons listed in the "transfer from" section of the form (owners of the account) must sign the form. All signatures must be medallion guaranteed, not notarized. Medallion guarantees are available at a bank or a brokerage.
After completing your portion of the form, please send it to the Fairmont State Foundation at the following address:
Fairmont State Foundation, Inc.
1300 Locust Avenue
Fairmont, WV 26554-1436
Our office will forward the form to the mutual fund company with instructions that the shares are to be sold and the proceeds sent to Fairmont State Foundation. The funds will be directed to any school, program, or purpose you previously designated.
If a Share Transfer Form Is Not Available:
If you are unable to obtain a form from your mutual fund company, you may write a letter addressed to the company authorizing the transfer of shares to the Foundation. All owners of the account must sign the letter, and the signatures must be medallion guaranteed. Please send the original signed letter to the Fairmont State Foundation at the address above so that the Foundation can attach a letter requesting the transaction.
Gifts of mutual fund shares do take some time to finalize, so advance preparation is recommended when the timing of a gift is critical.