Stocks, Bonds and Mutual Funds, Oh My!
The advantage to gifting stocks, bonds and mutual funds to the College of Veterinary Medicine are numerous.
First, these types of gifts may be donated as outright gifts or as a pledge payment. Any gift of securities allows an income tax deduction equal to the fair market value of the securities and individuals may avoid capital gains taxes on such a transfer.
A couple of important notes:
- Please notify the Iowa State University Foundation in advance if your stock is held by a bank or broker. This information is critical in providing donors with the proper tax credit and recognition.
- Individuals holding the physical stock certificates can donate them by mailing them and a completed stock power form to the ISU Foundation
- Donors should also plan ahead when making a gift using shares of mutual funds. The mutual fund process varies by company and individuals need to obtain the applicable transfer instructions. Mutual fund transfers take longer than a stock transfer and individuals should allow four to six weeks. Individuals wishing to make a year-end gift and want tax credit in the current year should start the process no later than November of each year.