STOCKS AND BONDS

Gifts of Securities
Methods of Valuation of Securities
Methods of Delivery & Effective Date of Transfer
Contact Us
 

Gifts of Securities

Publicly traded securities, shares of stock in closely held companies, bonds and government issues may be given to the Foundation for the benefit of the university.

Methods of Valuation of Securities

Publicly traded securities – securities regularly traded on a public stock exchange. The value of the gift will be the average of the highest and lowest selling prices quoted for the security on the day of the gift.

Closely held securities – securities in entities that have been organized for profit-making purposes and are rarely traded on stock exchanges. Donors may give shares of closely held stock to the Foundation for the benefit of the university in the same manner as publicly traded securities. Special IRS guidelines exist for the valuation of closely held stock, and the donor will be responsible for obtaining the information which they will need in order to comply with the IRS guidelines.

Gifts of closely held stock may be valued by the OSU Foundation at the per share cash purchase price of the most recent transaction, which may be the redemption of the stock by the corporation. It is the Foundation’s policy to convert closely held securities to cash. While it is permissible for the donor or donor’s company to purchase the securities at fair market value, there can be no redemption agreement, either formal or implied, prior to the gift.

Gifts of closely held securities may only be accepted by the Foundation president and, if not immediately sold, will be reviewed by the OSU Foundation Investment Committee at their next regularly scheduled meeting.

Annually, the Foundation treasurer will review information received from the closely held corporation regarding the valuation of the shares and adjust the carrying value on the Foundation’s financial statement as necessary. In the absence of information being provided from the corporation, the treasurer will request information from the corporation regarding the valuation of the shares. At least annually, a report of all closely held securities held by the Foundation will be provided to the OSU Foundation Investment Committee for their review.

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Methods of Delivery & Effective Date of Transfer

Hand Delivery - If securities are hand delivered to the Foundation, the value of the gift will be its fair market value on the date of delivery. To transfer ownership of the stock to the Foundation, donors should obtain a stock power, signing it exactly as it appears on the certificates, and have their signature guaranteed by their banker or broker. For securities that are hand delivered, the gift date is the date the securities are delivered to the Foundation except in the case where ownership of the security is transferred by a transfer agent and a new certificate is issued in the name of the Foundation. In this case, the date of the gift will be the transfer date indicated on the newly issued certificate.

Mailing - If the securities are mailed to the Foundation, the value of the gift will be its fair market value on the date the securities were postmarked except in the case of securities transferred via a transfer agent as described above. Donors should obtain a stock power, signing it exactly as it appears on the certificates, and have their signature guaranteed by their banker or broker. The stock power and a letter of instruction should be mailed to the Foundation under separate cover from the stock certificate(s). The Foundation should be designated on the stock certificate(s), stock power or related instruments of transfer as Oklahoma State University Foundation. The stock certificate(s) should be sent by registered mail, return receipt requested, to the Foundation. Unendorsed stock certificates are non-negotiable. The postmark date on the stock power will be used as the gift date when the stock certificate and stock power are mailed under separate covers.

Electronic Transfer - If securities are electronically transferred from a donor's brokerage account to an account held in the name of the Foundation via the Depository Trust Company (DTC), then the value of the gift will be its fair market value on the date on which the securities are transferred to the Foundation account. Donors may contact the Foundation to obtain DTC instructions that they will then give to their broker along with a letter of instruction regarding the specific securities to be transferred. A copy of the letter of instruction should be sent to the Foundation in order that the donor may be receipted properly.

Contact Us

If you have questions about making a donation of securities, please contact the office of Treasury and Investments at (800) 622-4678 or e-mail dkoeppe@osugiving.com.

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OKLAHOMA STATE UNIVERSITY FOUNDATION
400 South Monroe / P.O. Box 1749 / Stillwater, OK 74076-1749
Ph. 800.622.4678 / Fax 405.385.5102 / info@OSUgiving.com
© 2013