Stock gift pledge payments

Jesse Calagna 2

I have a $25,000 stock gift that is going to pay 3 seperate pledges in a batch.  I can't figure out how to go about selling the stock.  If I enter the stock gift on 3 different lines so that it pays each pledges what do I put for the sell price and post date.  Do I sell all 3 separately after dividing the stock sale price by 3 or do I only put the stock sale price on one of the pledge payments?


Thank you in advance!

Ryan Hyde

When I have to do this, what I do is only add the pertinent sale information to one gift. I do not add thank-you letters for the other two, and I customize the thank-you letter on the one that's getting acknowledged to reflect the entirety of the gift and the entirety of the sale information. The other two gifts will get gift notes on them telling any future auditor or development person to look at the main gift for all the pertinent details.

Beth Romano

here is what I do when receiving stock.

All stock gifts need be added on the constituent’s record - not through batch.

1. To add the stock information on the constituent record - open the constituent record, Gift tab, and open a New Gift.
2. Under Gift Type select “Stock/Property”
3. Gift Date - use the transfer date (is Trade Date from Stock confirmation)
4. In Value field, enter the amount of the total proceeds
5. Enter the Campaign and Fund – if you don’t know the campaign, enter the fund first and it will default to the correct campaign
6. Under the “Issuer” area, enter the stock name, and click on Details to put in the symbol, number of shares and median price.
7. Click “Save” – NOT “Save and Close” *(See below before selling the stock)

To sell the stock, go to Gift (icon) – select sell “Stock/Property”

 

1. Enter the date of sale – with the cash receipt date
2. Enter the sale amount – this is the gross amount
3. Enter the fees involved with the transaction
4. Make sure that you change the post date to be the same as the cash receipt date.
5. Hit OK

Apply the stock to a pledge (if necessary)

 

1. Go to Gift (Icon) – apply to – pledge
2. Select the correct pledge – make sure the correct amount is being applied to the pledge.
3. Hit OK

If you are splitting the gift between funds, click OK to change the amount of the gift and select “Create a Remainder Stock Gift.”

Check to make sure the fund and the campaign are correct on the gifts.  If splitting a gift, you will need to correct the fund and campaign on the remainder gift.

*If applying stock and creating a remainder gift do the following:

1. Apply the gift to the pledge before selling the stock.  This will create the remainder gift
2. Sell one for the face value and have the other gift reflect the gain/loss – make sure to reduce the sale value of one of the gifts by the face value of the other gift, this way the gain/loss will be posted correctly. (take the remainder subtract the total settlement amount(from the stock confirmation) to get the gain/loss difference)
3. In the remainder gift – remember to change the fund and campaign to reflect where the remainder needs to be applied.

Since we do not get stock very often I have to rely on my notes on entering them into Raiser's Edge.

Dariel Dixon 2

If the pledges are already existing, why not just enter the gift once and apply it to all three pledges?  I think that is the easiest route to go, as you would only have to enter the gift information in once.  


I'm not a big fan of entering complex gifts like this through batch.  It is easier IMO to just enter the gift manually and apply the gift to the pledges after entry.

Ryan Hyde

For me, our appeal code is the most important data point, and splitting a gift across multiple pledges results in some pretty broken data. I'm squarely in the "never split a gift" camp. I understand it works for some folks, but not for me.