Making a Gift of Securities

| Download Stock Transfer Instructions (PDF) |
| Download an Irrevocable Stock Power Form (PDF) |

More and more alumni and friends donate securities to Middlebury each year. Securities such as stocks, bonds and mutual funds make a wonderful gift, and the procedure for donating them is simple. Best of all, the tax savings to the donor can be significant. Here's why:

Selling securities or mutual funds that have appreciated in value generally will result in long-term capital gains tax being due if the securities have been owned for more than 12 months.

Making a gift of long-term appreciated securities or mutual funds to Middlebury AVOIDS THE CAPITAL GAINS TAX.

In addition, the gift allows the donor who itemizes deductions to take an INCOME TAX CHARITABLE DEDUCTION for the full fair market value of the securities, up to 30% of adjusted gross income.

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Stock & Mutual Fund Transfers to Benefit Middlebury College

A. If you hold your stock in certificate form:

1. By certified mail, return receipt requested, send unendorsed certificate to Cory Buxton, Treasury Analyst, Service Building, Middlebury College, Middlebury, VT 05753.
2. In a separate first class envelope, send to the same address a stock power form for each certificate, signed exactly as your name appears on the security but otherwise left completely blank.
3. Include a signed letter of instruction specifying the number of shares being transferred and the gift designation. For example, "100 shares of XYC Corporation to the Middlebury College Annual Fund." If your gift is to be for less than the total number of shares listed on the certificate, include your social security so a new certificate with the remaining shares can be issued.
4. The value of your gift will be the average of the high and low quotations using the later of the postmarked date from the stock certificate of the stock power form.

B. If your broker (or bank) holds your stock shares or mutual fund shares, you may request that they be transferred directly to Middlebury via electronic transfer of DTC:

1. Telephone or e-mail Cory Buxton, 802-443-5816, and he will expedite transfers with you and your broker or banker.
2. The effective date of your gift will be the date the stock of mutual fund shares arrive in Middlebury's account, and the value of your gift will be the average of the high and low quotations for that day (in the case of stock) or the value at the end of that day (for mutual fund shares).
3. Stock transfers normally are completed in two to three business days, depending upon your broker. Mutual fund transfers often take three to four weeks, especially at year-end, due to additional paperwork required to complete the transfer.

Please allow appropriate time to complete these gifts.

For stock or mutual fund transfer questions, telephone or e-mail Cory Buxton, 802-443-5816.

For questions about your gift or if you are working directly with the Office of Gift Planning, please contact us toll-free at 866-496-MIDD(6433) or via e-mail.

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Benefits of these types of gifts:

1. Greater tax benefits than equivalent cash gift
2. Income tax charitable deduction if you itemize deductions
3. Avoidance of capital gains tax on the appreciated securities or mutual fund shares donated
4. Avoidance of broker's sales commission

For more information about making gifts of securities or mutual funds, please contact us.