Gifts of securities

The University welcomes gifts of both marketable and closely held securities.

Marketable Securities

Gifts of publicly traded securities that have appreciated in value allow you to claim a charitable deduction for the full market value of the securities on the date the gift is made. You pay no capital gains tax on the appreciation.

Closely Held Securities

Gifts of stock in closely held corporations may result in substantial tax benefits in the form of charitable deductions and avoidance of capital gains taxes. Closely held securities can be especially attractive in funding charitable remainder trusts or charitable remainder lead trusts. Because special regulations apply to gifts of this kind, we encourage you to consult your tax adviser and the University’s development staff when considering such a gift.

Notify the University

When planning to make a gift of securities to the University of Chicago, please notify Gift and Records Services by calling 773.702.2401 or via e-mail at securitiesgifts@uchicago.edu.

Stock transfers via DTC

To transfer securities to the University electronically, i.e., via Depository Trust Company (DTC), provide the DTC transfer instructions to your broker. The securities will be transferred directly into the University's gift account at its custodian bank.

In order for the University to properly credit the gift, it is important that you or your broker notify Gift and Records Services of the gift and its intended purpose, and that the broker reference your name in the DTC transfer instructions.

The DTC transfer instructions are as follows:

The Northern Trust Company/Chicago
DTC: #2669
Agent bank: #20290
For further credit to: The University of Chicago
Account number: 26-80803
Donor's name, address, name of security, number of shares, fund name/purpose

Print a PDF version of DTC Transfer Instructions.

How An Electronic Transfer of Stock Works

  • Your broker sends your gift instructions to Northern Trust via the Depository Trust Company (DTC).
  • Northern Trust notifies the University of Chicago’s Office of Investments that your gift of securities has been received.
  • The Office of Investments sells the securities through the University’s brokerage account at Morgan Stanley.
  • The Investment Office sends Northern Trust an instruction letter directing the bank to deliver the shares sold to Morgan Stanley on settlement date.
  • The University of Chicago receives the proceeds from the sale from Morgan Stanley on settlement date.

Mutual fund transfer

Donors wishing to gift mutual funds should use the following information or contact Telly Green in Gift and Records Services directly at 773.702.2401 or via e-mail at securitiesgifts@uchicago.edu.

Transfer Instructions:
Schwab’s DTC#: 0164
Code: 40
Schwab mutual Fund account: 6716-4566
Schwab’s customer service number: (800)435-9050
Please remember to also include: Donor’s name, address, name of security, number of shares, fund name, and gift purpose.

Print a PDF version of the Mutual Funds Transfer Instructions.

Physical delivery & transfer date

Physical stock and bond certificates may be mailed or hand-delivered directly to:

The University of Chicago
Office of Investments
401 North Michigan Avenue
Suite 900
Chicago, IL 60611

You may also call Gift and Records Services at 773.702.2401. When mailing certificates, please enclose a letter of instruction that contains detailed information about the security gift. We recommend that you transmit the certificate by certified U.S. mail with return receipt requested. Alternately, you might wish to use an express mail or delivery service that will obtain a signature verifying receipt of delivery.

The registered owner of the certificate, the stock power, or bond power must sign exactly as the name appears on the certificate and acquire a Medallion Signature Guarantee (usually obtainable from your bank or broker). It is recommended that the certificate and the power be sent under separate cover, each with a letter of instruction enclosed.

When the University of Chicago is the registered owner of the certificate, no stock or bond power is necessary. If the certificate is to be registered in the name of the University prior to being sent, then the University's address and tax identification number (TIN) must be provided to the transfer agent as follows:

The University of Chicago
Office of Investments
401 North Michigan Avenue
Suite 900
Chicago, IL 60611
TIN: 36-2177139 (This TIN may be used for gifts supporting any part of the University, including the Medical Center.)

Per IRS guidelines, the date of contribution is the date on which the transfer of ownership takes place. The University of Chicago recognizes its legal ownership as of the date on which you relinquish control of the securities:

  • If the certificate is registered in the name of The University of Chicago, then the date of contribution is the date the stock is transferred on the books of the issuing corporation (i.e., the date on the face of the certificate).
  • If you are the registered owner of the certificate, then the date of contribution is the latter of:
    • the postmark on the envelope containing the stock power,
    • the endorsement date on the certificate or stock power,
    • the postmark on the envelope containing the certificate, or
    • the date on which the certificate is hand delivered to an agent of The University of Chicago.

Making a deferred gift

Charitable gift annuities provide you or another annuitant with a fixed, guaranteed income stream for life. The amount of the income is based on the age of the annuitant(s) at the time of the gift and the value of the assets used to fund the annuity. A minimum gift of $10,000 in cash or appreciated securities is required to set up a charitable gift annuity.

Deferred-payment charitable gift annuities allow you to defer receiving income from your annuity for a specified term of years. This type of an annuity is an effective retirement vehicle. Usually set up before retirement, when your income tax bracket is likely to be higher than after retirement, the annuity entitles you to an immediate charitable gift deduction at the time you make the gift. Then, when you retire and begin receiving the annuity payments, the income is likely to be taxed at a lower rate, when your tax bracket is likely to be lower than it was when you made the gift.

Questions?

Telly Green
The University of Chicago
Gift and Records Services
5253 S. Harper Court
4th Floor
Chicago, IL 60615
773.702.2401

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