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Gift of a CD?

  • 1.  Gift of a CD?

    Posted 09-15-2021 02:18 PM
    Hello Colleagues,
    We have a donor who is the beneficiary of a CD that is held in trust. I believe the trust has come to fruition. They are asking if they can gift the CD to the College. I expect they are trying to avoid tax implications. Can they do this?
    Thanks.

    Elizabeth Rich
    Director of Advancement Services
    Elms College, 291 Springfield Street, Chicopee, MA 01013
    Ph: 413-265-2403 Fax: 413-265-2449
     
    To make a gift: http://www.elms.edu/make-a-gift-online/ or Text Elms to 41444



  • 2.  RE: Gift of a CD?

    Posted 09-15-2021 03:52 PM
    I know a donor can open a CD in your name.  I know a donor can open a CD in their name and assign a charity as an income beneficiary.  I know a donor can wait for a CD to mature and donate the proceeds.  But I do not think I have ever seen transferring an existing CD into another name.

    The donor will still have to take ownership of the CD before they do whatever they do.  That means paying whatever taxes there might be.

    My suggestion is for the donor to contact the bank holding the CD and find out from them what their charitable giving options are.

    BTW, if the trust has not come to fruition, it might be possible to change the CD to POD and name the charity as the beneficiary.  Regardless, have the donor call the bank!

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Gift of a CD?

    Posted 09-16-2021 07:43 AM
    Thanks, John.



    --

    Elizabeth Rich
    Director of Advancement Services
    Elms College, 291 Springfield Street, Chicopee, MA 01013
    Ph: 413-265-2403 Fax: 413-265-2449
     
    To make a gift: http://www.elms.edu/make-a-gift-online/ or Text Elms to 41444