Gifts of Securities
The NPS Foundation accepts donations of securities in any amount. Before transferring any securities to the Naval Postgraduate School, please contact Merrill Ruck, Executive Director of the NPS Foundation by phone at (831) 656-2427 or by email at mwruck@nps.edu. It helps make the process smoother if the Foundation knows the name of the stock and the number of shares in advance to ensure proper identification and registration of your gift. The procedure that you will then follow depends on how the assets are held. We will be happy to walk you through the process of donating your securities, no matter what form.
Items to Consider when donating Securities:
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Plan Ahead When Making Your Gift. If you are making a gift at year-end for a tax deduction in that calendar year, be aware of the time it takes for assets to transfer completely, The transfer of mutual funds in particular can take six weeks or longer. For transfers of mutual funds, the official date of the gift is the date the assets are received by the NPS Foundation. For gifts of physical certificates, the date of the gift is the postmark date.
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Avoid Selling Appreciated Stock and Giving the NPS Foundation the Proceeds. Although this will still count as a gift, the IRS will impose capital gains tax on your sale, depriving you of a key tax benefit.
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Don’t Transfer Securities That Have Depreciated in Value. The fair market value deduction rule works against you: if you bought the stock for $50,000 and it’s now worth $30,000, your charitable deduction will be limited to $30,000. You won’t earn a capital loss by making the transfer. Instead, sell the depreciated stock, claim the resulting tax loss as a single deduction, and then use the proceeds to make a tax-deductible cash gift to the NPS Foundation.
