Recording/accounting for stock gifts

Julie Klett

Hi all... we have a complicated conudrum of sorts...


When we record stock gifts, we record the gift value on the day of the stock transfer (let's say 100 shares for a $1,000 total gift value). The donor is thanked and receipted for that amount ($1,000). In the days later, we get a check for the sale of that stock from our broker, which does not equal the original gift value because of changing stock values (check could be, say, $900 or $1,000. Are you recording/tracking this broker sale amount in RE, and if so, how? We are considering entering the original gift amount ($1,000) as a Stock-Pledge, and then recording that the payment from our broker has been received, as a Stock-Pay ($1,000, no matter the final sale amount, $900/$1,100) and our accounting team will reconcile any discrepancies at their end. This way, we can track that a gift has been made and also whether the broker payment has been received, which makes things easier at the accounting end.


To add to the challenge, let's say a donor has pledged $10,000 to a project, when the original trade value info is received ($1,000 gift value) we would want to apply that amount to the original pledge, but we cannot seem to add a pledge to a pledge.


Zoiks! Thanks... this is a bit over my head!

JoAnn Strommen

First, no you can't add a pledge to a pledge.  But you shouldn't need to.  I really like how RE handles stock gifts.  You enter the stock gift and then you do a separate action to 'sell' it and mark it as sold.  This is where you can record the broker fees. 

This is just one of the knowledge base articles - some are for RE some RE NXT.  Just search for gifts of stock or something similar. This one is "how do I enter stock gifts" 
https://kb.blackbaud.com/articles/Article/46483


Once you figure it out, RE works well in my opinion for handling stock gifts.

JoAnn Strommen

And you can apply the stock gift to the original pledge amount.  Just enter it as a stock/property gift and choose option to apply it to a pledge.

Julie Klett

Thanks! We have that part down.


JoAnn Strommen:

And you can apply the stock gift to the original pledge amount.  Just enter it as a stock/property gift and choose option to apply it to a pledge.

 

 

Julie Klett

Thank you. That is very helpful and I will look at the article with my accounting team.

JoAnn Strommen:

First, no you can't add a pledge to a pledge.  But you shouldn't need to.  I really like how RE handles stock gifts.  You enter the stock gift and then you do a separate action to 'sell' it and mark it as sold.  This is where you can record the broker fees. 

This is just one of the knowledge base articles - some are for RE some RE NXT.  Just search for gifts of stock or something similar. This one is "how do I enter stock gifts" 
https://kb.blackbaud.com/articles/Article/46483


Once you figure it out, RE works well in my opinion for handling stock gifts.