Stock Gifts and Soft Credits

Jenn Haleakala

Hello,

For Donor advised funds, we hard credit who wrote the check and soft credit the donors who directed the donation.  In the case for a donor who gives a gift of stock, should it be the same practice of hard crediting where the check came from and a soft credit to the donor who gave the stock?  All feedback is appreciated.

Thank you.  

JoAnn Strommen

Interesting way to look at it. But no. When person gives money to a DAF, the funds now technically belong to the DAF. Person receives tax receipt. Person 'advises' them what to do with it.


Stocks are still owned by the person.  Investment company does not have the authority to sell/give etc. Only at direction of the stock holder. We have always receipted the individual for X shares of ABC stock on X/X/XX.  I can see where you're coming from with the question but I've never heard of any org not HC/receipting the individual.

 

Cheryl Segear

Jenn Weber:

Hello,

For Donor advised funds, we hard credit who wrote the check and soft credit the donors who directed the donation.  In the case for a donor who gives a gift of stock, should it be the same practice of hard crediting where the check came from and a soft credit to the donor who gave the stock?  All feedback is appreciated.

Thank you.  

We HC where the check came from and SC the donor that directed it and send them the receipt, not the company that sent the check.

Gracie Schild

Hi - I agree with the others that a gift of stock is coming directly from the donor and not through a DAF, so the donor gets the hard credit and the broker is just like the bank on the face of a personal check - no credit at all, unless you record the name of the "bank" on the gift in the pre-designated bank (does anyone have time for that?). A DAF gift "advisor" (ie, the person who put the money in the DAF in the first place) gets a thank you, but no receipt, since they already got one from Schwab or Fideiltiy or whoever runs the DAF. 


On the other hand, we do not record any soft credits anymore, especially not for this. We have a batch format that we call "Pass Through Gifts"  - the donor (not the DAF company) gets "credit", but the receipt amount is set to $0, and the letter says "Thank you for designating a gift from Fidelity Charitable Fund in the amount of Gift Amount for the XYZ fund. The gift arrived on Gift Date." We pull the name of the check-issuing fund by putting it in Gift Code, a field we weren't using for anything else. We put ***EDIT*** in if it's something we don't have in the table (and don't expect to see again). The gift code field is filled in during batch entry.


Hope that helps!