Guide to Gifts of Stock

Why Donate Stock?

Donating appreciated securities such as stocks or mutual funds is a smart and easy way to support the Shakespeare Theatre Company. Just as with cash gifts, you will receive a federal income tax donation for the full market value of any securities you donate as long as you have owned them for at least one year. You may also avoid the capital gains taxes you would owe if you sold these securities.

Securities can be used for memberships or annual fund gifts. Stocks and mutual funds may also be used to fund gift plans. There are many different ways to plan your gift to the Company, many of which can save you taxes now, reduce the tax burden on your estate, provide lifetime income to you (or another),  and provide a generous ultimate gift to the Shakespeare Theatre Company.  For more information on planned giving opportunities, please contact Amy Gardner, Associate Director of Development, at 202.547.3230 ext. 2327.

Thank you for your support of the Shakespeare Theatre Company!

Valuation of a Gift of Securities

The following should not be construed as tax or legal advice.  Please consult your tax advisor for specific details.

According to IRS regulations, the donor has both the right and responsibility for valuing noncash contributions. Typically, donated securities are valued at the mean between the high and low prices for the securities on the gift date. The gift date is the date that the securities pass unconditionally from the donor’s control to the Company.
  • If the securities are transferred electronically to the Company’s account at RBC Wealth Management, the gift date is the date the securities are received in the Company’s account. DTC Number 0235. Account # 351-12887.
  • If the securities are re-registered in the name of the Company by a transfer agent, the gift date is the date of re-registration.
  • If the securities are transferred to the Company from a bank or brokerage firm, the gift date is the date on which the securities are transferred into an account in the name of the Company.
  • If the securities are mailed, the gift date is the date of the postmark.
  • If the securities are delivered in person, the gift date is the date on which the Company takes possession of the securities.

By law, a gift of securities is not considered complete until the donor has relinquished control of the securities to the Company as outlined above. Giving instructions to a broker does not constitute completion of a gift. If a donor writes a letter of instruction to his/her broker on December 27, but the securities are not transferred until the following January 2, the gift date is January 2.

Note : The gift value shown to the Donor will differ from the cash value of the gift credited to the equity account due to the method of calculating the gift value and the time delay in selling the securities.

Types of Securities

Publicly traded securities and shares of stock in closely-held companies may be donated to the Company.

Methods of Delivery

Gifts of Stock:When a donor makes a gift of stock to the Shakespeare Theatre Company, we request that the donor or their broker inform the Company that the gift is being made by calling 202.547.3230 ext. 2323 and providing the name of the stock and the number of shares in order to ensure proper acknowledgment. Because all electronic stock transfers arrive in the Company’s RBC Wealth Management account without any donor names attached, the Company will be able to properly identify the donor associated with a stock gift only if we have this information.

Gifts of securities may be made to the Company in three ways: by mail, through a broker, or by hand delivery.

  • By Mail – Sign a stock power (obtained from your broker or bank) as your name is shown on the stock certificate. Mail the unendorsed stock certificate to Shakespeare Theatre Company in one envelope and send the signed stock power in another. Insure the donor refrains from endorsing the stock certificate itself in order to best protect the Company and donor from loss.
  • Through a Broker –Securities should be delivered to the account of the Shakespeare Theatre Company. If your broker already holds your securities, he/she should be instructed to contact the Shakespeare Theatre Company and arrange to transfer the securities irrevocably to its account at RBC Wealth Management Attn: Mr. Shawn O’Reilly, 1700 Pennsylvania Avenue, NW, Suite 700, Washington, DC 20006. Phone: 202.661.9534, Fax: 202.661.9706.
  • By Hand Delivery – Securities may be hand delivered to Shakespeare Theatre Company Offices. Or, if it is more convenient, you may deliver them to the trust department of any bank and ask a trust officer to telephone a report of the gift to the Company. You may also request a Shakespeare Theatre Company staff member to pick up securities at your convenience.