Securities – that are actively traded on recognized stock exchange and other readily marketable securities, including bonds may be accepted as gifts by the Foundation. Typically the Foundation will sell such securities but will evaluate them on a case-by-case basis after the securities have been received.
Mutual funds – In most cases, the Foundation must open an account in order to accept gifts of mutual fund shares. Aspects of this process are beyond the Foundation’s control and may be lengthy before a transaction is complete. Therefore, donors are advised to allow sufficient time to complete such transfers. The donor must notify MSF of the mutual fund shares being gifted, the name of the institution at which the shares are held (brokerage firm, financial institution or the mutual fund company itself), the number of shares, the intended gift date, and the intended use of the gift.
Closely held or non-publicly traded securities – must be approved by the MSF Endowment Advisory Committee. Valuation of closely held securities may be challenging due to infrequent trading, which makes it difficult to establish fair market value. MSF does not accept more than 49% of such securities.
Restricted Securities – must be approved by the MSF Endowment Advisory Committee. Restricted securities (unregistered securities, investment-letter stock, control stock or private placement stock) are limited due to the difficulty in transferring ownership and determining fair market value.
Donors are advised to consult their own legal advisors and IRS Publication 561, which describe the protocol in detail, including the procedures for appraisers, and contents of appraisals, in establishing the value of their gift for tax purposes.