GIFTS OF STOCKS AND OTHER SECURITIES

BENEFITS OF GIVING STOCK
A gift of stock (or other appreciated property) entitles you to a tax deduction for the market value of the donated stock (not just your cost basis). If the stock you wish to donate has been held for more than one year, you can avoid capital gains tax on any appreciation of the stock by donating the stock prior to sale. The National Academies benefits by selling the stock without paying taxes on the gain, and you benefit from making a contribution that would be larger than what you might have been able to donate in cash.

TRANSFERRING STOCK TO THE NATIONAL ACADEMIES
To donate shares of stock to the National Academies, electronically or by mail, please use a letter of transmittal stating your intention to donate to the Academies. Send the letter to both Bear Stearns (the Academies' broker) and to the National Academies Development Office. Contact information for Bear Stearns can be found below.

For all electronic transfers of stock to The National Academies, other than those to be directed to The National Academy of Engineering Fund*, please refer to the instructions below.

Electronic transfer to the National Academies account with Bear Stearns and Companies:
Please have your broker contact Bear Stearns (David Blinder or his assistant, Mary Carol MacDonald, at 800.235.3162 or 404.842.4400) and inform them of your wish to transfer stock to the National Academies (account #05048145, DTC #352).

To transfer of stock certificates to The National Academies account with Bear Stearns:
You may choose to mail stock certificates directly to Bear Stearns at the address listed below. When the stock certificates are mailed, please also send a fully- and properly-executed stock power under separate cover.

It is strongly suggested that you send the stock and stock power via either overnight U.S. mail or certified mail/return receipt requested. If sending certified, you should retain the date-stamped receipt for tax records. The date of the gift for substantiation/acknowledgement is the date the securities and fully-executed stock power are mailed via U.S. Post Office or delivered by private carrier.

David Blinder, Account Executive for The National Academies
Bear Stearns and Companies, Inc.
3424 Peachtree Road NE, Suite 1700
Atlanta, GA 30326-9983
Phone: 1.800.235.3162 or 404.842.4400 Fax: 404.995.4909
Account # 05048145 DTC # 352

National Academies Tax IDS
#53 0196932 – IOM/NAS/NRC
#23 7284092 – NAE

*For electronic donations of stock to The National Academy of Engineering Fund, please have your broker contact Bank of America Investments, 1-800-926-1111, and inform them of your wish to transfer stock to The National Academy of Engineering Fund (account #WD4-003212, DTC #0226).

How the Value of Your Gift Will Be Determined
The value of your gift is the average price of the stock on the date the stock was electronically transferred to the National Academies. If you have mailed certificates, the date stamped on the U.S. postal service certified mail receipt as the date the stock certificates and fully-executed stock power were mailed will be used. If you use a private carrier (such as Federal Express), IRS rules recognize the gift as being completed when actually delivered, not when the certificates are sent.

If you would like further information about making a gift of stock, contact us at 202-334-2431 or giving@nationalacademies.org.

This information reflects, in very general terms, how a gift might affect specified tax liabilities. This is not an effort to reflect your current tax picture or suggest that a particular gift will have the indicated result in your case; only your lawyer and accountant can do that. We suggest you consult your professionals before acting upon the concepts reflected here.