A gift of appreciated stock is an excellent way to support the Cockrell School while simultaneously avoiding a capital gains tax taking a charitable deduction. Outright gifts of marketable securities for current operations or endowments can be made in several ways:
If the donor has a broker, the donor should advise the broker that he or she wants to make a gift to The University. Preferably, this request should be in the form of a letter, containing the following information:
- The name of the stock;
- The number of shares;
- The donor's name and address; and
- What the stock will be used for.
The stock gift will actually be made to the Board of Regents of The University of Texas System for the use and benefit of The University of Texas at Austin. The donor's letter should tell the specific use/purpose for the gift.
In the letter to the broker, it is advisable for the donor to copy the Engineering Foundation at:
Cockrell School of Engineering
UT Austin
1 University Station, C2104
Austin, TX 78712-0287
The donor's letter should instruct the broker to call the UT System Office of Estates and Trusts at (512) 499-4346 for instructions to transfer the stock.
If the donor does not have a broker, the unendorsed stock certificate should be sent via Federal Express, or similar guaranteed overnight delivery service, to:
Ms. Charlotte Hambrick
The University of Texas
210 West 6th Street
Austin, TX 78701
Additionally, the donor should sign a Stock Power, in blank, identical to the way the name is listed on the stock certificate. The Stock Power should be sent separately in the same manner to the address above. It is stressed that the Stock Power should be signed in blank; for example, the name of the transferee should not be entered on the Stock Power. This allows the Board of Regents to sell the stock immediately upon receipt; thus, quickly locking in a sales price for the gift. If the donor does not have a Stock Power, The University can provide one.
Once the signed Stock Power and the stock certificates are in the UT System Office, the gift can be processed.
If you have questions about a stock gift, please contact the Engineering Foundation office at 512-471-3395 or ut@engr.utexas.edu.
