How To Give A Gift of Stock
A way to avoid paying high capital gains taxes while you lower your cost of giving a gift

The Dilemma

The growing value of Wall Street investment portfolios has been a great source of financial fortune for many people. With many analysts predicting a market that will soon surpass record levels, capital gains problems are becoming prevalent for many investors.

The Solution

Many stock market investors are friends of and donors to Emmanuel School of Religion. Emmanuel is in a unique position to receive gifts of appreciated stock in a way which prevents the donor from paying exorbitant capital gains taxes. In addition to removing the obligation to pay capital gains taxes on the market appreciation of the stock, giving appreciated stock to Emmanuel also lowers the cost of giving the gift.

Let’s Be Specific

If a donor gives Emmanuel School of Religion $10,000 in cash, the cost of the gift is $10,000. But if the donor pays $5,000 for a stock investment that increases in value to $10,000, then the cost of giving that stock as a gift is only $5,000. The donor avoids taxes on the gain, yet can still claim a full $10,000 as a charitable deduction on his income tax return. Thus the cost of the gift is greatly reduced by giving it through stock.

A Service To You

If Emmanuel can assist you in transferring a gift of stock to the School, please contact us and we will be happy to talk you through the transfer process. After the transfer, Emmanuel will send you a receipt that you may use in declaring your charitable deduction on your tax return.

Some Questions You May Have

How do I transfer stock to Emmanuel?

If you would like to transfer stock to Emmanuel, you must contact your broker and ask that a specific number of shares of a specific stock be transferred to Emmanuel School of Religion as a gift. Your broker can then electronically transfer the gift to Emmanuel’s brokerage house, UBS PaineWebber. The transfer number is DTC 0221. Emmanuel’s account number is JY-01074-CW.

Is there a person I can work with on a transfer of stock?

If you have any questions about the transfer, you can contact Emmanuel’s broker, Mr. Cal Wilson, at 1-800-847-7522. Emmanuel’s Director of Finance, Dave Marshall, may be contacted at (423) 461-1516. Emmanuel’s Executive Director of Development, Dan R. Lawson, may be reached at (423) 461-1531.

Should Emmanuel be directly notified of the transfer?

Yes. It would be helpful if you as the donor would phone or write Emmanuel to specify how you wish the funds from the stock sale to be used. A simple notification of the amount of stock being transferred, the name of the stock, the approximate dollar value, and to where the funds should be designated will be most helpful.

How is the value of stock determined?

Emmanuel’s policy has been to place a value on the stock related to the closing price of the stock on the day in which it is transferred to the school’s account. It is also Emmanuel’s policy to sell all donated stock immediately and not hold it in our portfolio.

How do I transfer a stock certificate to Emmanuel?

On the back of each stock certificate is a line for the owner to sign, thus making the certificate immediately negotiable, similar to writing a check payable to cash and signing it. Once the back of the certificate is signed, it should be sent to Emmanuel via registered mail to ensure that it reaches us safely. Otherwise, it is negotiable by anyone.

An alternative is to secure a “stock power” document from your broker, bank, or local office supply store. Mail the stock certificates to Emmanuel unendorsed in one envelope and one stock power for each certificate in a separate envelope. The stock power should be endorsed exactly as the name(s) appear on the certificate; if a stock is in joint names, both people must sign. Do not complete the stock power. Emmanuel’s broker, who is ultimately responsible for disposing of the stock, will finish the document. While the stock certificate is in the mail, it is safe because it is not negotiable without the stock power, and the stock power is worthless without the stock certificate.

Why don’t more people use stock in giving gifts to charities such as Emmanuel?

Many of our friends are simply unsure of how to go about making such a transfer, or are unaware that they can. It makes good sense to give in this manner, especially for donors who receive stock options from their employers, because the appreciated value of the stock is not taxable.

If you have questions about giving a gift of stock to Emmanuel School of Religion, please contact

Dan R. Lawson, Executive Director of Development
Emmanuel School of Religion
One Walker Drive
Johnson City TN 37601
(423) 461-1530
Email: lawsond@esr.edu

The purpose of this site is to provide information of a general nature. Neither Emmanuel School of Religion nor any of its associates are engaged in giving legal or tax advice. Individuals should seek the advice of their attorneys and tax advisors for specific tax implications and laws governing estate planning and charitable gifts.