Is an electronic signature valid for this agreement?

Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and most states' UETA statutes; ensure the signature method captures intent, attribution, and a retrievable record.

When is Form 8283 required for donated securities?

File Form 8283 when noncash gifts exceed $5,000 unless excluded; for certain gifts a qualified appraisal and signature may be required under IRS rules for noncash contributions.

How should broker transfer errors be resolved?

Contact both sending and receiving brokers with the agreement and DTC routing; confirm account numbers and request trace or recall if settlement failed; maintain written records of all communications.

Does the charity need a medallion guarantee?

Many brokerages require a medallion guarantee for certificate transfers; check receiving agent policy and obtain guarantees from banks or transfer agents when requested by broker.

How do we document sale authorization or restrictions?

Include a clear clause granting authority to sell or specifying holding restrictions; record any donor-imposed restrictions and ensure compliance with donor intent and applicable charitable trust rules.

Electronic Signature
Templates
Legal
Stock Gift Acceptance Agreement

Stock Gift Acceptance Agreement

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STOCK GIFT ACCEPTANCE AGREEMENT

This Stock Gift Acceptance Agreement (the "Agreement") is made as of by and between Donor Name: (the "Donor"), and Recipient Name: (the "Recipient").

RECITALS

WHEREAS, the Donor is the legal and beneficial owner of certain securities described below and intends to transfer all right, title and interest in such securities to the Recipient as an irrevocable gift; and

WHEREAS, the Recipient is an organization authorized to accept gifts of securities and desires to accept the gift upon the terms and conditions set forth in this Agreement; and

WHEREAS, the parties desire to set forth the terms of the gift, the methods of transfer, and the respective representations, acknowledgments and obligations of the parties.

NOW, THEREFORE

In consideration of the mutual covenants and agreements herein contained, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below:

"Securities" means the shares of capital stock or other equity interests described as: Issuer Name: ; Class/Series: ; Number of Shares: ; Certificate Number(s) (if certificated): ; Approximate Value: .

2. GIFT

The Donor hereby irrevocably gives, grants, conveys and transfers to the Recipient all of the Donor's right, title and interest in and to the Securities described above. The Donor represents that the transfer is intended as a completed and irrevocable gift and not as a pledge or transfer for consideration.

3. DELIVERY AND TRANSFER

The Donor shall deliver the Securities to the Recipient by the method indicated below. Donor elects: Certificated transfer (physical certificate) Electronic transfer (book-entry or DTC).

Transfer and Brokerage Instructions Donor's Brokerage or Transfer Agent Account / DTC / Reference Number

4. ACCEPTANCE

The Recipient hereby accepts the gift of the Securities upon the terms and conditions set forth in this Agreement. Upon acceptance, the Securities shall become the unrestricted property of the Recipient unless both parties have executed a written restriction described below.

Is the gift subject to any restriction or condition? Yes No If restricted, describe restriction(s)

5. DONOR REPRESENTATIONS AND WARRANTIES

The Donor represents and warrants to the Recipient that: (a) the Donor is the sole legal and beneficial owner of the Securities and has full right, power and authority to make this gift; (b) the Securities are free and clear of any pledge, lien, encumbrance, restriction, option, right of first refusal, or adverse claim other than as expressly disclosed in this Agreement; (c) no consent, approval or authorization of any third party or governmental authority is required for the consummation of the gift except as disclosed; and (d) all information provided by the Donor to the Recipient regarding the Securities is true and complete in all material respects.

6. TAX ACKNOWLEDGMENTS

The Donor acknowledges that the tax consequences of this gift depend on the Donor's particular circumstances and that the Recipient has made no representation regarding tax consequences. The Donor agrees to consult with the Donor's own tax advisor prior to making the gift. The Donor further acknowledges that the gift is intended to be irrevocable and that the Recipient will issue such receipts as may be required by law, reflecting only the fair market value and nature of the gift as determined by the Donor and documented by the Donor's records.

7. INDEMNIFICATION

The Donor agrees to indemnify and hold harmless the Recipient, its officers, directors, employees and agents from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of any misrepresentation, breach of warranty or inaccuracy of any representation made by the Donor in this Agreement, or arising from any claim by a third party challenging the Donor's right to transfer the Securities.

8. BROKERAGE FEES, TRANSFER TAXES AND EXPENSES

Unless otherwise agreed in writing, the Donor shall be responsible for any brokerage fees, transfer taxes, stamp taxes, handling charges and similar expenses incurred in effecting transfer of the Securities to the Recipient. The Recipient reserves the right to require payment of transfer or handling fees prior to completing the acceptance of the gift.

9. RECORDS AND ACKNOWLEDGMENT

Upon completion of the transfer, the Recipient shall maintain appropriate records reflecting the acceptance of the gift and shall provide the Donor with an acknowledgment of the gift describing the Securities accepted and the date of receipt. Such acknowledgment shall comply with applicable law to the extent required by the Recipient's recordkeeping policies.

10. NOTICES

All notices, requests, consents and other communications required or permitted under this Agreement shall be in writing and delivered to the parties at the addresses set forth below (or to such other addresses as a party may designate by notice to the other party).

Donor Address for Notices Recipient Address for Notices

11. AMENDMENT AND WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties. No waiver by either party of any breach of this Agreement shall be deemed a waiver of any subsequent breach.

12. COUNTERPARTS

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

13. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflicts of law that would result in the application of any other law.

14. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral, relating to the gift of the Securities.

15. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and the invalid provision shall be replaced by a valid provision that most closely reflects the parties' original intent.

16. ADDITIONAL ACKNOWLEDGMENTS

The parties acknowledge and agree that this Agreement may be relied upon by the Recipient's transfer agent, broker, and legal counsel in completing the transfer and acceptance of the Securities, and that the Recipient may take any actions reasonably necessary to effect the transfer and to comply with applicable corporate governance or transfer agent requirements.

Donor:

By:

Date:

Recipient:

By:

Date:

What the Stock Gift Acceptance Agreement Is and When It Applies

A Stock Gift Acceptance Agreement is a written contract used by a charity or nonprofit to document terms for receiving donated publicly traded securities. It defines the security description, transfer method, valuation date, broker or DTC instructions, the charity's right to sell, donor representations, and tax acknowledgment. The agreement helps coordinate the transfer with brokers, clarifies responsibilities for fees or certificate delivery, and creates the contemporaneous written acknowledgment required for donor tax substantiation under federal rules.

Why a Formal Agreement Matters for Stock Donations

A clear Stock Gift Acceptance Agreement reduces processing delays, documents donor intent, and preserves the donor's tax deduction by capturing contemporaneous acknowledgment and valuation details.

Who Typically Prepares and Signs This Agreement

Nonprofit gift officers, legal counsel, donor advisors, and brokerage teams commonly use this agreement to complete securities donations.

Nonprofit gift officers: manage acceptance policy, confirm broker instructions, and issue tax receipts to donors.
Donors and financial advisors: provide transfer details, represent ownership, and request acknowledgement for tax filings.
Brokerage/transfer agents: execute DTC book-entry transfers or deliver physical certificates per the agreement.

Use this agreement to align parties, document the transfer method, and preserve the donor's substantiation for tax purposes.

Step-by-Step: Completing a Stock Gift Acceptance Agreement

Follow these practical steps to prepare, execute, and process a securities gift with minimal friction.

01

Prepare Agreement: Populate donor, broker, and security fields; attach transfer instructions.
02

Obtain Donor Signatures: Have donor sign the agreement and any required transfer forms or medallion guarantees.
03

Coordinate Transfer: Send instructions to donor's broker and receiving agent; confirm DTC or physical routing.
04

Issue Acknowledgment: Provide donor a dated written acknowledgment for tax substantiation.

How the Agreement Moves a Gift from Donor to Charity

The operational flow ties the agreement to broker actions and the charity's internal acceptance procedures.

Document Creation: Charity prepares agreement and assigns signers.
Donor Signs: Donor reviews and signs; mediator or advisor may co-sign.
Broker Transfer: Donor's broker sends shares to the charity's DTC account or delivers certificates.
Acknowledgment Issued: Charity records receipt, issues contemporaneous written acknowledgment.

Common Digital Workflow Settings for Online Completion

Set up fields and authentication to match your acceptance policy and regulatory needs.

Field	Configuration
Signature Type	Remote e-signature with audit trail
Authentication	Email plus SMS code or KBA for high-value gifts
Delivery Method	DTC book-entry or physical certificate instructions
Notification	Automated email to donor and gift officer

Technical Considerations for eSigning and Transfer Coordination

Verify that your eSignature platform supports required authentication, audit logs, and document export formats before use.

Integrations: Salesforce, NetSuite, Google Workspace
File Formats: PDF, DOCX supported
Security: TLS and AES-256 encryption

Ensure the platform preserves a tamper-evident audit trail, supports downloadable signed PDFs, and integrates with your CRM or donor database for automatic receipt generation.

Key Timelines and Tax-Related Deadlines to Watch

Timely transfers and written acknowledgments affect donor tax treatment and internal reporting; coordinate year-end activity early.

Year-end Transfer Cutoff:

Initiate transfers before Dec 31 to count for that tax year.

Donor Acknowledgment Window:

Issue contemporaneous written acknowledgment per IRC §170(f)(8).

Form 8283 Filing:

File Form 8283 for noncash gifts exceeding $5,000 when required.

Appraisal Timing:

Obtain qualified appraisal before donor files return if appraisal required.

Broker Settlement:

Allow typical DTC settlement time; confirm transfer within several business days.

Penalties and Short-Term Risks to Watch

Acknowledgment required (IRC §170(f)(8)): Donor deduction may be disallowed

Form 8283 (>$5,000): Appraisal and filing required

Transfer errors: Loss or delay of securities

Notary omission: May void signature acknowledgment

Penalties (IRC §6721): $60–$330 per incorrect return

Intentional disregard: $660+ per form, no cap

Common Preparation Mistakes That Cause Delays

Incomplete broker details: missing DTC number or account contact frequently stalls settlements and requires manual follow-up with broker operations.
Vague security descriptions: listing an issuer without ticker or CUSIP can cause repositories to hold or reject transfers due to ambiguity.
Late valuation documentation: failing to document valuation date or appraisal for large gifts can jeopardize the donor's deduction during IRS review.
Unsigned or mis-signed agreements: absent or incorrect signatures, or missing titles, can render the acceptance invalid under charity policy.

Security, Compliance, and Recordkeeping Essentials

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Comprehensive timestamps and IP records

Certifications: SOC 2 Type II and ISO 27001

HIPAA: BAA available when required

ESIGN / UETA: Supports federal and state e-sign rules

Access Controls: Role-based permissions and SSO

Core Clauses to Include in a Professional Agreement

A well-drafted Stock Gift Acceptance Agreement balances donor representations, transfer logistics, valuation rules, and the charity's authority to sell or reject securities.

Acceptance Clause

State whether the charity accepts the specific securities and under what conditions, including any reservations of the right to refuse gifts that conflict with policy or pose undue administrative burden.

Transfer Mechanics

Specify DTC routing, receiving account, certificate delivery instructions, medallion guarantee requirements, and contact points for broker coordination to ensure timely settlement.

Valuation Rules

Define the valuation date and method used to establish fair market value for tax purposes and whether the charity will rely on broker closing prices or an independent appraisal when required.

Donor Representations

Require donor assertions of ownership, absence of encumbrances, authority to donate, and agreement to indemnify the charity for misrepresentations or disputed title.

Power to Sell

Grant the charity explicit authority to liquidate donated securities promptly or hold them per investment policy, and specify how sale proceeds will be used or restricted.

Tax Acknowledgment

Commit the charity to provide a contemporaneous written acknowledgment stating donation date, property description, and whether goods or services were provided in exchange.

Use Cases: How Different Organizations Handle Stock Gifts

Practical examples show how procedures scale from small nonprofits to large institutions and which provisions they emphasize.

Local Arts Nonprofit

A neighborhood arts nonprofit accepted a donor's gift of 150 shares

Broker transfer to DTC received within five business days
The charity sold the shares immediately, recorded proceeds, and issued a dated written acknowledgment for the donor to claim a 2025 deduction.

University Development Office

A university's gift team used a standard agreement for planned gifts of stock

Donor provided broker and CUSIP details in advance
The university coordinated a medallion guarantee, processed the transfer, and logged the gift in its endowment accounting system.

Typical eSignature Provider Comparison for Stock Gift Workflows

Compare common capabilities and starting prices for platforms often used to execute and archive Stock Gift Acceptance Agreements; signNow is listed first per vendor comparison guidance.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About Stock Gift Acceptance Agreements

Answers to common execution, tax, and operational questions when accepting donated securities.

Need help? Contact support

Is an electronic signature valid for this agreement?
Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and most states' UETA statutes; ensure the signature method captures intent, attribution, and a retrievable record.
What does the charity need to provide a donor for tax purposes?
The charity must provide a contemporaneous written acknowledgment stating the donation date, property description, and whether goods or services were provided, consistent with IRC §170(f)(8) requirements for donor substantiation.
When is Form 8283 required for donated securities?
File Form 8283 when noncash gifts exceed $5,000 unless excluded; for certain gifts a qualified appraisal and signature may be required under IRS rules for noncash contributions.
How should broker transfer errors be resolved?
Contact both sending and receiving brokers with the agreement and DTC routing; confirm account numbers and request trace or recall if settlement failed; maintain written records of all communications.
Does the charity need a medallion guarantee?
Many brokerages require a medallion guarantee for certificate transfers; check receiving agent policy and obtain guarantees from banks or transfer agents when requested by broker.
How do we document sale authorization or restrictions?
Include a clear clause granting authority to sell or specifying holding restrictions; record any donor-imposed restrictions and ensure compliance with donor intent and applicable charitable trust rules.

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