Mutual Fund Transfer Instructions
The transfer of mutual funds is a time-consuming process and generally takes two to six weeks to complete the transaction. Once you decide that a gift of a mutual fund is the appropriate choice, there are several key points to observe.
Transfer in kind - do not sell or redeem
It is important that the mutual fund gift be transferred into Wheaton College's name. If it is sold from your account, then the gift becomes a gift of cash rather than a gift of securities, and you will be responsible for capital gains tax.
Timing
As with other securities, the mutual fund is not considered a gift (for tax purposes) until it has been transferred out of your name and into Wheaton college's name. There is significant variability from fund to fund with regard to how long a transfer will take. Generally, the transfer is dependent upon several variables: how the fund is held, how responsive the mutual fund is to transfer requests and how complete is the transfer request.
Cost basis
If the mutual fund gift is intended to be added to a charitable trust or to establish a charitable gift annuity, your cost basis must be determined in order to properly categorize the nature of the periodic income distributions according to the four tiers. Cost basis can be complicated if you reinvested income and capital gains over the time period the fund was held. Wheaton's Office of Gift Planning can work with you to determine your cost basis.
Where and how a mutual fund is held
You could be holding the mutual fund in several forms: certificate form (physical), with a broker, or with the fund. When compiling the necessary paperwork needed to accomplish the transfer, it will be important to identify where and how the mutual fund is held.
Required transfer paperwork
Most funds will require several documents from you and Wheaton to affect the transfer. The typical requirements for donor/charity are as follows:
Letter of instruction from donor
This should state what you are giving, when it should happen, to whom it is being given, the account number from which the mutual fund is coming, and to whom the transfer agent should speak if there are questions. The letter must be signed by the account owner(s) and signature guaranteed. The signature guarantee can be done by most banks and brokerages if the account owner is present and can provide photo identification.
Letter of instruction from charity
This should confirm the source of the expected gift, convey a new account application and corporate resolution, and provide the name of a contact person at the charity.
New account application from charity
Most mutual funds will require that its own account application be completed and the original returned. It is important to secure this paperwork from the mutual fund company as soon as possible.
Corporate resolution from charity
This generally can be obtained from the corporate secretary or gift-processing area.
Form W-9 from charity
Not all funds will require this form, but it is easy to complete and may save precious time later.
If you would like to make a gift to Wheaton of shares in your mutual fund, call the Office of Gift Planning at 1-800-896-3145, option 5. They will work with you to make the process as easy as possible.
This page is maintained by The Office of Gift Planning. Last updated on 9/27/06.
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