Meredith College accepts gifts of securities (stocks and bonds).
The College’s policy requires that securities given to Meredith College be sold as soon as possible. At times, a donor may express her wish that the gifted securities be held for a specific period of time. The College may or may not honor this request depending on a decision made by the Vice President of Business and Finance. Any restriction by a donor jeopardizes her/his deductibility unless a Rule 144 stock is involved.
Delivery of Securities
A donor may deliver or transfer a gift of stock in the following manner:
- Electronic transfer
- Medallion Signature Guarantee transfer (in person or via mail)
Electronic Transfer through the donor’s broker is the most efficient and easiest for all concerned. A donor may instruct her/his broker to transfer the security to the College’s account. It is extremely important that the donor or the donor’s broker notify the Gift Records Coordinator of the impending transfer. A letter of intent then must be sent via mail or fax to our office.
Stock transfer/letter of intent form
Valuation of Security
A gift is valued on the date of transfer, assuming the security is marketable to the College at that time, which may be:
- The postmark date
- The date of delivery, if done personally
- The date the certificate is registered in the College’s name with specific instructions authorized by any of the following; or
- The date the gift enters the College’s account.
- Gift valuation is based on the average of the high and low price of the security on the date of transfer.
December 1st transfer date 100 shares XYZ Corporation
High of the day—$81.00
Low of the day—$78.00
Gift Value—$79.50 x 100 shares = $7,950.00
Meredith College Brokerage Information
Robert W. Baird & Co.
Account #: 3998 1579
DTC #: 0547
Toll Free: (877) 792-3238
Contacts: Carolyn Leith (919) 789-5964, Jolene Miles (919) 789-5963
Attn: Advancement Services—Stock Gifts
3800 Hillsborough Street
Raleigh, NC 27607-5298
Medallion Signature Guarantee Stock Transfer
When you have the stock certificates in hand:
- Do not sign the stock certificates.
- Go to a bank, a brokerage house or other financial institution that has a stock power form. This form needs to be signed and dated in their presence. Do not sign it in advance.
The donor must have a guaranteed stock power for every stock certificate. Each stock power has to be endorsed with the donor’s signature, exactly as the name appears on the face of the stock certificate. The bank’s licensed agent will provide a Medallion Signature Guarantee* on the stock power.
- When the Medallion Signature Guarantee on the stock power is completed, prepare a dated authorization or cover letter to Craig Barfield, Vice President for Business and Finance, Meredith College, 3800 Hillsborough Street, Raleigh, NC 27607, copying the Vice President for Institutional Advancement, Lennie Barton.
In this letter, please state the purpose, number of shares and designation. This documents the donor’s intent to give the stock to Meredith Collegeand tells the College how the gift should be designated. This can be as simple as a hand written letter. And it should be signed the same way the stock power(s) and certificate(s) are signed.
- Please send the stock power(s) and the cover letter in one envelope and the unsigned stock certificates in another envelope (not in the same envelope)or deliverto the Business and Finance Vice President’s office in Johnson Hall
If it is mailed, the date of the gift is the date on the envelope. If it is hand delivered, the date it is delivered to campus is the date of the gift. It is essential that the stock power and the certificates are kept separate: they can be mailed on the same day, but in separate envelopes. If mailed, it is recommended that they be posted by certified mail.
What is a Medallion Signature Guarantee?
In essence, a Medallion Signature guarantee indicates that the financial institution (such as a commercial bank, trust company, securities broker dealer, credit union or savings institution) is a member of a Medallion Signature Guarantee program and is an acceptable signature guarantor. This is not the same as a notarized signature. A notary stamp is not acceptable when transferring the ownership of stock. It protects the donor by making it harder for anyone to take these certificates or by forging the donor’s signature.
Corporate/Foundation: For gifts by corporations or foundations, a corporate resolution should also accompany the Medallion signature guarantee.
Trust: For Trusteeships, a copy of the page designating individuals authorized to make transfers should accompany the Medallion signature guarantee.