Thank you for considering a gift of securities to Pomona College. Giving appreciated securities held for more than one year can be a tax-wise way to make charitable gifts. There are two tax benefits from gifts like these. First, donors can take a federal income tax deduction equal to the full fair market value of the donated shares on the date of the gift for up to 30% of adjusted gross income. Second, donors also completely avoid tax on the embedded capital gain. The Gift Planning Department will coordinate with the Investment Office, which must approve acceptance of all gifts of marketable securities. The minimum value of any gift of marketable securities is $1,000.
Publicly Traded U.S. Stocks and Bonds – Electronic Transfer
Pomona accepts most publicly traded U.S stocks, bonds, and mutual funds that are DTC eligible through a broker-to-broker electronic transfer. To initiate the transfer from your broker account to the College’s broker account, you will need to provide your broker with the following information:
Newport Beach, CA Office
DTC #0164 code 40
Account Title: Pomona College
Account #: 2146-2675
Tax Identification #: 95-1664112
If your broker account is with Charles Schwab, ask your broker if the transfer can be accomplished by journal entry to Pomona’s Schwab Account #2146-2675.
When you initiate the transfer with your broker, it’s important to alert Pomona’s Investments Office so we can identify your gift when it arrives. Please email the following information to Carol Klitgaard:
- Personal Information:
- Name of donor(s) with class year, if applicable
- Preferred email, so we can confirm our receipt of the transfer
- Preferred phone number, in case we have questions
- Legal owner of your broker account (how title is shown on your account statement)
- Securities Information (needed for each security transferred):
- Ticker Symbol and Security Name
- Number of Shares
- Your Broker Firm’s Information:
- Broker’s Name
- Broker’s Phone Number
- Broker’s Email Address
- Allocation of your Gift:
- We will allocate your gift to the Annual Fund, unless you specify otherwise.
- Other welcome allocations include:
- Scholarship Fund
- Reunion Class Fund (specify year)
- Parents Fund
- Other (please describe how you’d like to benefit the College and we will be in touch to discuss and finalize the details)
For questions about allocation options, please contact Dr. Salvador Rivas, Assistant Vice President for Advancement or call his assistant, Jaque Pollock at (909) 607-7441.
Mutual fund shares in a broker account that are DTC eligible can be handled easily as described above. For mutual fund shares not in a broker account or not DTC eligible, the transfer process is determined by the mutual fund company and can take some time to implement, so it’s important to plan ahead. If you have a broker account with Charles Schwab, ask your broker if the transfer can be accomplished by journal entry to Pomona’s Schwab Account #2146-2675, as that is often the easiest way.
If your shares are held with a broker firm other than Schwab, ask your broker how they prefer to transfer non-DTC eligible mutual fund shares to Pomona. Some mutual fund shares held at other brokers can be transferred to Pomona's Schwab Account and others cannot, so to avoid delays, we like to check with Schwab before your broker initiates a transfer. Please contact Carol Klitgaard in the Investments Office or call (909) 621-8115 so she can confirm whether Schwab is able to accept the specific mutual fund shares you want to transfer.
If your mutual fund shares are held directly with the mutual fund company and are not DTC eligible, please contact your mutual fund company for their instructions on how to transfer shares to charity. Because your account information is confidential, mutual fund companies will not talk to representatives of Pomona about the transfer process, will not send us forms, and will not allow us to initiate a transfer for you. Sometimes, for example, the College must establish an account with the mutual fund company to receive the shares, but the process can be different for different companies. For customized plans for transferring non-DTC eligible mutual fund shares to Pomona, please email Carol Klitgaard in the Investments Office or call (909) 621-8115.
Valuation and Your Charitable Deduction
We will determine your gift value and charitable deduction in accordance with IRS rules. The gift is complete on the date securities are received in Pomona’s account, not when the transfer is initiated. For stocks, the value will be the average of the high and low prices on the date of gift; for mutual fund shares, it will be the net asset value (NAV) at the close on the date of gift. Securities that have been held for one year or more may be deducted up to 30% of your adjusted gross income; the balance may be carried forward with the same limitation for up to five additional years.
To transfer physical certificates, foreign stocks, or any other gifts that require special handling, please contact Carol Klitgaard in the Investments Office or call (909) 621-8115. Please include a description of the items you want to transfer to the College.
For physical certificates, there are typically two ways you can handle the transfer:
- You may send the stock certificate to your stock broker or transfer agent and ask to have it re-registered in the name of Pomona College. You receive valuation of the stock as of the date on the re-registered stock certificate.
- You can forward the original stock certificate and stock power form to Pomona College by mail or hand delivery. You’ll need to secure a Medallion Signature Guarantee on the stock power form and you can usually get that from your bank or other financial institution. If you choose to mail the stock certificate and stock power form, the stock power form should be mailed separately from the stock certificate. The gift is completed upon the College’s receipt of both envelopes; therefore, the latest postmark of the items received is used as the date of the valuation of the stock. The date of valuation for hand delivered gifts is the date all of the completed documents are handed to a Pomona College staff member.
Non-Marketable or Closely-Held Securities
The Gift Planning Department will coordinate with the Investment Office, which must approve acceptance of all gifts of non-marketable or closely-held securities. These include partnerships, limited partnerships, limited liability companies, closely-held companies, stock of entities that fall under SEC Rule 144, legend stock or bonds of entities that are thinly traded, and stock of entities held for sale at the request of a donor. Because of the unique nature of these securities, special due diligence review may be required before acceptance. The minimum value for any gift of a non-marketable or closely-held security is $10,000.