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TIMING OF CHARITABLE DEDUCTIONS§ 6.4 GIFTS OF MONEY BY TELEPHONEA deductible income tax charitable contribution can be made by means of thetelephone. This can occur through use of a pay-by-phone account maintained ata financial institution. When the gift is made by transfer from this type ofaccount, which the donor has initiated by telephone, the deduction arises on thedate the financial institution makes the payment to the charitable organization. 29In this instance, the financial institution is acting as the agent of the donor. 30§ 6.5 GIFTS OF SECURITIESThere are some items of property as to which the law has constructed a formalsystem for the transfer of title. This is the case in connection with stocks, bonds,and other securities (which are forms of intangible personal property). A securityusually is evidenced by a certificate, and title to the underlying security canbe transferred by an endorsement on the certificate, indicating transfer of thesecurity from one person to another. Transfers of securities are usually effectedby brokers.Thus, a person may make a contribution of a security to a charitable organization,and create a federal income tax contribution deduction, when the properlyendorsed certificate evidencing the security is delivered to the charitableorganization. Delivery can also be accomplished by such a transfer to an agent ofthe charitable donee.When the properly endorsed certificate is mailed to a charitable organizationor an agent of the organization, the deduction arises as of the date on whichthe certificate was mailed. When the certificate is unconditionally delivered tothe corporation that issued the security or to a broker acting on behalf of thedonor, for purposes of arranging for transfer of title to the security to the charitabledonee, the charitable deduction comes into being on the date the transfer ofthe security is formally recorded by the issuing corporation. 31 When the certificateis delivered to a broker representing the charitable donee, however, thededuction arises as of the date of delivery. 32 Mere notation on the records of thetransferee charitable organization of a contribution of securities is not sufficientto cause effective transfer of title. 33Court cases illustrate the intricacies of these rules. In one instance, an individualdecided to contribute some stock to several charities, wanting to makethese gifts before a payment of money for some of the shares pursuant to a tenderoffer and before accrual of the right to dividend income from the shares. Thedonor sent a letter to a trust company withdrawing the stock from a trust andrequesting delivery of the stock to a bank. On the same day, the donor wrote to29 Rev. Rul. 80-335, 1980-2 C.B. 170.30 E.g., Commissioner v. Bradley, 56 F.2d 728 (6th Cir. 1932).31 Reg. § 1.170A-1(b). Of course, in applying this rule, it must be shown that the intermediate transferee is, infact, an agent of the donor; e.g., Ferguson v. Commissioner, 99-1 U.S.T.C. 50, 412 (9th Cir. 1999), aff’g 108T.C. 244 (1997); Sawade Estate v. Commissioner, 795 F.2d 45 (8th Cir. 1986); Greer v. Commissioner, 70T.C. 294 (1978), aff’d on another issue, 634 F.2d 1044 (6th Cir. 1980); Londen v. Commissioner, 45 T.C. 106(1965). Whether a person is, in fact, an agent of another is a question of state law. See, e.g., § 10.2.32 E.g., Morrison v. Commissioner, 53 T.C.M. (CCH) 251 (1987).33 McCall v. United States, 72-1 U.S.T.C. 9263 (D.S.C. 1972). 176