Splitting stock gifts, and applying to multiple pledges

Jennifer Hughes 2

I originally posted this under the general RE section. Thanks to JoAnn Strommen for suggesting I re-post under Data Entry... We're still relatively new to RE, and -- even with help from RE support -- have been unable to figure out how to enter stock gifts that need to be split between a minimum of two funds, especially when one or both are pledges. In some cases, we're getting shares of multiple stocks from the same donor. For example: a donor gives us 434 shares of CVX stock at $103.36/share. He also gave us 43 shares of XOM at $87.80/share. These need to be split between a $5,000 pledge for our Annual Fund, and the remainder needs to be applied to a pledge for a special project. Do I apply the initial (unsold) stock to the pledges -- and how?, as neither amount equals either pledge, and when the check amounts from our broker won't equal the values I enter initially (value = no. of shares x mean)? And then how do we sell the stock and split the proceeds? Am I making this more difficult than it needs to be? We totally stumped the very nice woman working in RE Support - who said she can help us pull any info we want, but *entering* the information was beyond her. In fact, she eventually wondered if we didn't just want to enter these as checks ... but I'm pretty sure our auditor wouldn't approve of that... There must be a better way! Please help!

JoAnn Strommen

Jennifer Hughes:
I originally posted this under the general RE section. Thanks to JoAnn Strommen for suggesting I re-post under Data Entry... We're still relatively new to RE, and -- even with help from RE support -- have been unable to figure out how to enter stock gifts that need to be split between a minimum of two funds, especially when one or both are pledges. In some cases, we're getting shares of multiple stocks from the same donor. For example: a donor gives us 434 shares of CVX stock at $103.36/share. He also gave us 43 shares of XOM at $87.80/share. These need to be split between a $5,000 pledge for our Annual Fund, and the remainder needs to be applied to a pledge for a special project. Do I apply the initial (unsold) stock to the pledges -- and how?, as neither amount equals either pledge, and when the check amounts from our broker won't equal the values I enter initially (value = no. of shares x mean)? And then how do we sell the stock and split the proceeds? Am I making this more difficult than it needs to be? We totally stumped the very nice woman working in RE Support - who said she can help us pull any info we want, but *entering* the information was beyond her. In fact, she eventually wondered if we didn't just want to enter these as checks ... but I'm pretty sure our auditor wouldn't approve of that... There must be a better way! Please help!

Jennifer, did you look at the knowledgebase solutions that I gave links to and what I posted?  It shouldn't be that hard that support could not help you either.  I'd call them back if you still can't get them entered.  There should be someone there who can tell you how to enter it if the posts and knowledgebase solutions are not answering your questions.  Yes, it's a bit confusing but not too difficult to enter the gifts.

 

PS suggestion was really not to re-post but suggestion of better place for future posts.  Some users post their questions in several sub-forums which is really unnecessary.   

Mary McConne

Jennifer Hughes:
I originally posted this under the general RE section. Thanks to JoAnn Strommen for suggesting I re-post under Data Entry... We're still relatively new to RE, and -- even with help from RE support -- have been unable to figure out how to enter stock gifts that need to be split between a minimum of two funds, especially when one or both are pledges. In some cases, we're getting shares of multiple stocks from the same donor. For example: a donor gives us 434 shares of CVX stock at $103.36/share. He also gave us 43 shares of XOM at $87.80/share. These need to be split between a $5,000 pledge for our Annual Fund, and the remainder needs to be applied to a pledge for a special project. Do I apply the initial (unsold) stock to the pledges -- and how?, as neither amount equals either pledge, and when the check amounts from our broker won't equal the values I enter initially (value = no. of shares x mean)? And then how do we sell the stock and split the proceeds? Am I making this more difficult than it needs to be? We totally stumped the very nice woman working in RE Support - who said she can help us pull any info we want, but *entering* the information was beyond her. In fact, she eventually wondered if we didn't just want to enter these as checks ... but I'm pretty sure our auditor wouldn't approve of that... There must be a better way! Please help!

This is what I'd do: Record a $5000 pledge payment with gift type of Stock Property. Note in the gift reference field that this is part of the block of 434 shares of CVX. Record a pledge payment for the special project using the dollar amount of that pledge and with note in the gift reference field that this is part of the block of 434 shares of CVX. I calculate the value of the CVX donation at $44,858.24. Record a stock/property gift for the remaining value of the CVX stock ($44k-$5k-$special project Pledge). Use the split gift if you need to allocate it among several funds. Then record the gift of XOM shares in the same manner. In total, you want to end up with gifts entered for this donor with the total value of the two stock gifts, but you won't see specific gifts entered for the two blocks of stock donations. Chances are when the check arrives from the broker for the sale of the stock, it will be different than the gift value on the date of the donation, due to market fluctuations and/or fees. This difference should be recorded as a gain/loss on the sale of assets and fees.......no need to adjust the gifts. We are integrated with FE, so this would flow through to our General Ledger correctly. Be in contact with your Finance Department about how you're entering the gifts and they should be able to trace them through to the correct GL accounts.....if you're FE integrated.....or create the journal entries themselves if you're not integrated. Hope this helps

Margaret Ellis

Jennifer Hughes:
I originally posted this under the general RE section. Thanks to JoAnn Strommen for suggesting I re-post under Data Entry... We're still relatively new to RE, and -- even with help from RE support -- have been unable to figure out how to enter stock gifts that need to be split between a minimum of two funds, especially when one or both are pledges. In some cases, we're getting shares of multiple stocks from the same donor. For example: a donor gives us 434 shares of CVX stock at $103.36/share. He also gave us 43 shares of XOM at $87.80/share. These need to be split between a $5,000 pledge for our Annual Fund, and the remainder needs to be applied to a pledge for a special project. Do I apply the initial (unsold) stock to the pledges -- and how?, as neither amount equals either pledge, and when the check amounts from our broker won't equal the values I enter initially (value = no. of shares x mean)? And then how do we sell the stock and split the proceeds? Am I making this more difficult than it needs to be? We totally stumped the very nice woman working in RE Support - who said she can help us pull any info we want, but *entering* the information was beyond her. In fact, she eventually wondered if we didn't just want to enter these as checks ... but I'm pretty sure our auditor wouldn't approve of that... There must be a better way! Please help!

You enter them as a new gift. It asks if you want to apply to a pledge. If so, say yes. The gift type will be a stock gift. You will also need to look at the split gift tab to apply the correct amounts to the correct funds/pledges. The gift amount is the value the stock was when received from the donor. Once you complete this, then you go under gift (4th item over) and go down to sell stock. This is where you enter value when you sell it and brokers fees etc. I hope this gets you pointed in the right direction.