Stock Gifts Program

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“It’s just slick!” says Jane Crane, treasurer of St. John UMC in Anchorage. “Not only is it easy for the church office, but it’s very easy for church members.” 

She’s talking about the Foundation’s Stock Gifts Program, which allows churches to easily and cheaply accept gifts of stock without having to maintain their own brokerage account. St. John UMC has been using this program since 2013.

That’s due in part to the fact that appreciated stock transferred in-kind to a qualified tax-exempt organization like the church creates a tax advantage for the givers, allowing them to bypass capital gains tax.

Starting in 2018, the Foundation is waving its administrative fee for this service as a gift to your church. This is part of our ministry. 

Let bookkeeper Jane Crane reassure you: “this process has been streamlined so well, and the people at the Foundation are so knowledgeable and quick to answer questions.” As St. John UMC has learned, reminding church members about the benefits of stock gifts can be well worth it. It’s unlocked some major generosity.

 

How to accept a gift of stock

Your church has been offered a gift of stock. Wonderful! After thanking the donor, what should you do next?

  1. First, you need to make the Foundation aware that a transfer is going to happen. Please tell us the donor's name and the name of your church. Give us a call at 1(800)488-4179 or send an email to staff@nwumf.org. 
  2. Next, you need to send the donor instructions about how to make the transfer (below), including the Stock Quick Facts page. 
  3. Finally, please send a letter 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.

Once we receive the shares, 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 at which the stock was sold. Then we send a check to the church along with information regarding the donor and any conditions related to the gift.

Below are instructions for the donor.

 

If shares are held by YOUR brokerage firm: 

Please notify your broker and request a DTC transfer of the shares you 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 to be transferred

Next, please notify the Foundation so that we know to look for the transfer and pass it on to your church. 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 you hold the stock certificates (A less common scenario): 

  1. DO NOT SIGN THE BACK OF THE CERTIFICATE.  Signing a certificate makes it negotiable (like mailing a large sum of cash). Instead you need to use a Stock Power (click here to download). The less information provided on the Stock Power the better. Stock transfer agents are intolerant of errors.
  2. The Stock Power, like a stock certificate, must be signed with your name(s) appearing exactly as it does on the face of the stock certificate.
  3. Your signature on the Stock Power must be guaranteed (not notarized) by a qualified bank. To accomplish this, you should go to your bank and request a signature guarantee.
  4. You are also required to sign a Security Release Form (click here to download). 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.

Please note: 

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 no additional administrative fees. 

Any questions may be directed to Tom Wilson, Executive Director of the NWUMF at 1-800-488-4179.