Frequently Asked Questions about

Gifts of Securities

Q. How is my gift valued?
A. According to IRS requirements, donated securities are valued at the mean between the high and low (bid and asked) prices for the securities on the gift date. The gift date (i.e., the date a gift of securities is considered complete) is the date that the securities pass unconditionally from your control.

·          If the securities are transferred to Tiferes’ account at Fleet Securities, the gift date is the date the securities are received in our account.

·          If the securities are re-registered in the name of Tiferes Menachem, the gift date is the date of re-registration.

·          If the securities are transferred to Tiferes Menachem on the books of a bank or brokerage firm, the gift date is the date on which the securities are moved into an account in the name of the Yeshiva.

·          If you mail the securities, the gift date is the date of the latter postmark of the certificate and the separately mailed stock power form.

·          If you deliver the securities in person, the gift date is the date on which the Yeshiva takes possession of the securities.

Please note: By law, a gift of securities is not considered complete until you have relinquished control of the securities as outlined above. Giving instructions to your broker does not constitute completion of a gift. If you write a letter of instruction to your broker on December 27, but the securities are not transferred until the following January 2, the gift date is January 2.

Q. How is my deduction determined?
A. The full fair market value of a gift of appreciated securities that have been held long-term (longer than one year) may be claimed as an income tax charitable deduction in the year the gift is made, up to a limit of 30% of your adjusted gross income. Any excess deduction not claimed in the year of the gift may be carried forward for five additional years.

If the donated securities were held for less than twelve months, only the cost basis in the securities is deductible, but the deduction may be claimed up to a limit of 50% of your adjusted gross income. Again, any excess deduction not claimed in the year of the gift may be carried forward for five additional years.

Q. What if I have holdings that have depreciated?
A. If you own securities that have depreciated in value and you have reason to use the depreciated asset to make your gift, it is generally better not to donate the shares themselves. Rather, you might want to sell them yourself, establish a tax loss, and then donate the proceeds to Tiferes Menachem. Consult with your advisors before moving forward with a gift of this kind.

Q. May I give a smaller number of shares than my

      certificate represents?
A. Tiferes would be pleased to arrange for a stock certificate or bond to be split in the event you wish to give fewer than the number of shares or bonds than the security represents. If you are holding the stock certificate or bond, simply send it to us in accordance with the transfer instructions for mailing stock certificates and indicate on your cover letter your social security number and the number of shares (or the dollar amount of the bonds) you wish to donate. A bank or brokerage firm must guarantee your signature on the stock or bond power. Tiferes will arrange for a new bond or certificate for the remaining shares to be issued and returned to you.

If you would like more information on gifts of stocks, bonds or mutual funds, please contact Rabbi Elgarten in the Office of the Yeshiva.

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