Some individuals have found that making gifts of long-term appreciated securities to their church are often more advantageous than outright gifts of cash. At the same time church treasurers and financial secretaries have discovered the process of establishing and maintaining a brokerage account to accept and sell these gifts cumbersome and time-consuming.
The Northwest United Methodist Foundation is able to accept gifts of appreciated securities for the benefit of a local church, sell them and remit the proceeds to the church. To do so the donor/church must provide their investment firm and the Foundation with the following information.
IF SHARES ARE HELD BY THE DONOR’S BROKERAGE FIRM:
1) Donor should notify his/her broker and request a DTC transfer of the shares they wish to give. To accomplish the transfer the broker will require the following information:
Name of the Foundation’s Brokerage firm: Fidelity Investments
Name of the account: Northwest United Methodist Foundation
The Foundation’s account number: x64984682
DTC Transfer No: 0226
The name of the stock and number of shares you will be transferring.
2) Notify the Foundation Our number is 1-800-488-4179. If voicemail answers, please leave a message. You may also email or fax the information to us. Please see our Gift of Stocks Quick Facts form for further information.
IF STOCK CERTIFICATES ARE HELD BY THE DONOR THE FOLLOWING STEPS ARE REQUIRED:
1) DO NOT SIGN THE BACK OF THE CERTIFICATE. Signing a certificate makes it negotiable (like mailing a large sum of cash). Instead the donor should use a Stock Power (see attached). The less information provided on the Stock Power the better.(This is due both to the potential for error by the donor and the intolerance of errors by stock transfer agents.)
2) The Stock Power, like a stock certificate, must be signed with the donor’s name(s) appearing exactly as it does on the face of the stock certificate.
3) The donor’s signature on the Stock Power must be guaranteed (not notarized) by a qualified bank. To accomplish this, the donor should go to their bank and request a signature guarantee.
4) The donor is also required to sign a Security Release Form (see attached). This form allows the Foundation to immediately sell the stock even though the certificate received is in another person’s name.
5) When all forms and signatures have been completed, the certificate should be mailed to the Foundation in one envelope and the Stock Power and Security Release in a second, separate envelope. The address is: NWUMF, PO BOX 656, Cashmere, WA 98815.
6) Notify the Foundation as soon as the stock and forms are in the mail. The number is 1-800-488-4179. If no one answers, leave a message.
7) Notify the church treasurer or other appropriate person at the church of your transfer so they can provide instructions to the Foundation.
In either of the above situations the Foundation will provide the donor with a receipt acknowledging the day shares came into our account, the average trading price of the stock on that day and the price the stock was sold. A check is sent to the church along with information regarding the donor and any conditions related to the gift.
INSTRUCTIONS TO THE RECEIVING CHURCH
When the church learns of a stock transfer a letter must be sent to the Foundation office signed by a trustee, treasurer or endowment committee chair authorizing the Foundation to sell the shares (unless you have previously sent a letter). The letter should be addressed to the Northwest United Methodist Foundation, PO Box 656, Cashmere, WA 98815. Click here to view a sample letter.
The Foundation will make no effort to time the sale of these gifts. Our policy is to liquidate stock as soon as it has been cleared for sale.
If ComputerShare is the custodian of your stock, please know that transfers and sales can take as much as two months. This delay can result in the proceeds of your gift being significantly more or less than you originally planned. The Foundation assumes no responsibility for the delay or its consequence as we have little control over the process.
Fidelity’s commission for the sale of stock is typically less than $10. The Foundation charges an administrative fee of $20.
Any questions may be directed to Tom Wilson, Executive Director of the NWUMF at 1-800-488-4179.