Gifts of Marketable Securities

POLICY: 8.3
Effective Date:
Last Updated: 06/04/2015

It is the policy of UGA for securities to be sold as soon as is practicable after the securities have been received. In order to expedite this process, accounts have been established to handle these transactions. The preferred method of transfer is to utilize the Depository Trust Company (DTC). An alternate means of transfer is for the actual certificate to be transferred and registered, but this method is much slower. After securities have been received, the securities will be sold and the proceeds applied as designated by the donor. The instructions for both methods are at the end of this section.

In certain circumstances, the donor(s) may request that another broker be used to sell the securities on behalf of UGA. In this situation, to be done on an exception basis, the broker will establish an account in his/her firm in the name of the receiving entity. The broker will work with the staff of the Financial Services Office to obtain the necessary corporate information to open the account.

After the account has been opened and the securities transferred to the account, the broker will sell the security and send the proceeds, the net of commissions, to the receiving entity.

University of Georgia Foundation Policies

 

Account Name:

 

The University of Georgia Foundation

 

UGA Foundation DTC Number:

 

5198

 

UGA Foundation Account Number:

 

706-04354

 

UGA Foundation Taxpayer ID Number:

 

58-6033837

 

UGA Foundation Broker:

 

Peter Amann

Merrill Lynch
Atlanta, Georgia

 

Assisted by:

Email:

Elizabeth (Liz) Hajnal

elizabeth.hajnal@ml.com

 

 

Merrill Lynch Office Number:

 

(404) 264-2914
(800) 937-0838

 

Merrill Lynch Fax Number:

 

(404) 890-7822

 

 

The Office of Gift and Estate Planning should be notified of the name and number of shares of securities being transferred. Additional information is available from:

 

 

Office of Gift Accounting

394 S. Milledge Ave.

Athens, Georgia 30602

(706)542-8979

Toll-Free: (888) 268-5442

Fax: (706) 583-0793

Email: gifts@uga.edu

 

The following information (or as much as possible) is needed:

 - Donor Name

 - Designation - if split then supply % to each account

 - Expected gift amount

 - Type of Security

 - # of shares

While DTC allows a speedy delivery of securities, it does not provide a great deal of information in the account. The donor should be advised to have his or her broker attach the donor's name to the DTC instructions.

GIFTS OF STOCK

1. Do not sign the certificate(s).

2. Please sign one (1) Stock Power for each stock issue. Please make extra copies as necessary. Sign your name on the form exactly as indicated on the stock certificate.

3. Please mail stock certificate(s) to the University of Georgia, Inc. unsigned and in a separate envelope from the Stock Power(s).

4. Lastly, please mail the Stock Power(s) to The University of Georgia, Inc. The address is: The University of Georgia, Inc., Office of Development, 394 South Milledge Avenue , Athens, Georgia 30602

University of Georgia Foundation Policies

When the stock certificates have been registered -

1. Simply have the donor mail or deliver the certificates(s) to UGA (see #4 above).

2. The Financial Services office will handle the remaining details. Please call Gift Accounting at 706-542-5787 with questions.

For all gifts of marketable securities, the Gift Accounting Office will obtain the high and low price for the date the gift is officially transferred. The valuation is based on the average of the high and low price quoted for that date. The average price sets the price per share for gift valuation.

 

In many cases, there is a period of time between the date of gift and the date of sale. It is common that a gain or loss may be recognized on the sale of the stock. The gain/loss will be booked to the fund receiving the gift. The gift valuation for the donor is not adjusted. For split gifts of donated stock (designated to benefit more than one fund), all gains/losses will be split according to the original gift designation unless otherwise requested in writing by the donor.

 

Valuation Process

 

 

Electronic Transfer of Securities Information (DTC):