How it works
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You transfer your securities (stocks, bonds, and/or mutual fund shares) to Wentworth Institute of Technology. |
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Wentworth sells your securities; proceeds from the sale go to the Institute to support your program of choice. |
Benefits
- You can use your stocks, bonds, and mutual funds to fund a life income gift — which will give you (or your loved one) income for the rest of your life, or for a specified number of years. By doing this, you can greatly increase the return rate that you would have received if you had kept the securities.
- You will receive an immediate income tax deduction which is based on the fair market value of the securities on the date that you make the gift, no matter what you originally paid for them.
- You will avoid the capital gains tax that you would pay if you sold the securities outright.
- You can direct your gift to a specific program.
- You will have made a significant gift to Wentworth.
- You will become a member of Wentworth's Giving Society.
An illustration
Mark purchased Company stock 15 years ago for $100,000. This stock is now worth $200,000 and pays him approximately 2% income per year, or $4,000. While selling the stock would net an impressive profit, it would also trigger a capital gains tax of approximately $15,000.
Instead of selling the stock, Mark can set up a Charitable Remainder Trust to pay income equal to 6% of the value of the Trust assets to himself and his wife, Irene. (Note that percentage rates can vary based on the donor's situation.)
Since the Trust assets in the first year equal $200,000, his income from the Trust is $12,000 — three times more than he earned off the 2% dividends.
In addition to receiving income, Mark will receive a charitable deduction, avoid the capital gains tax, and reduce his taxable estate for estate tax purposes. |
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How to make your stock/security donation
If your stock is held by a broker, notify the broker that you wish to make a gift of securities to Wentworth. Brokers need written authorization from you before they can make the transfer. Be sure to tell them 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 Wentworth. Once you have authorized the transfer, ask your broker to contact the Institutional Advancement Office at (617) 989-4282. Our office will give your broker complete transfer instructions.
Please give your broker the following information, so he/she can complete an electronic transaction:
- Agent Bank Name
Fidelity Investments
Attn. Banking Services
100 Crosby Parkway
Mail Zone KC1N
Covington, KY 41015
phone: 800-544-8666
- Agent Bank Participant (DTC) No.
0226
- Agent Bank (Internal) Account No.
Wentworth Institute Endowment Fund
Z43672513
- Taxpayer Identification Number
04-1958460
If your securities are not held by a broker, then you can either mail the certificates (or bring them personally) to the Institutional Advancement Office. We recommend that you use registered mail. Please include the following:
- Your unendorsed certificate(s).
- A cover letter that includes your name, address, and phone number.
- A signed, signature-guaranteed stock power. Your local bank can provide stock power forms.
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