Stock Property Gifts policy and procedure

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Patti Perdue
Patti Perdue
Seventh Anniversary Photogenic First Comment Connector Level 1
in Blackbaud Raiser's Edge NXT®: General Discussion
Does anyone have a policy and procedure for entering stock property gifts in RE that they would be willing to share?
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  • Megan Thoms 2
    Megan Thoms 2
    Ninth Anniversary Photogenic 5 Likes First Comment

    Patti Perdue:

    Does anyone have a policy and procedure for entering stock property gifts in RE that they would be willing to share?

    We have created instructions for how to enter stock gifts in RE and then where to keep the backup information about the stock gift. Essentially, we attach the information to the specific batch on our company web.

  • Mercedes McCayRead
    Mercedes McCayRead
    Tenth Anniversary 100 Likes 100 Comments Photogenic

    Patti Perdue:

    Does anyone have a policy and procedure for entering stock property gifts in RE that they would be willing to share?

    We are notified via email that we have received a stock gift by our broker. Our Executive Director notifies the broker that we wish to sell the stock.  The next business day we receive an email with the following information: donor's name, stock name, # shares sold, date sold, high, low and average prices.  We enter the gift type on the constituent's record as stock/property and use the average price multiplied by the # shares as the donation amount.  In the reference I would put # shares of [stock].  We also use gift attributes so we can show what the high, low and average values of the stock sold were.  All of that information pulls into the tax receipt portion of our letter. 

  • JoAnn Strommen
    JoAnn Strommen Community All-Star
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    Similar to other posts.  When the org receives gift of stock they are immediately sold. On the donor record we enter the stock/property gift - date, # of shares, type of stock. We also enter that the stock was sold, amount of broker fee etc. Gift is applied against a pledge if appropriate.


    Donor receives a receipt stating date the stock was gifted to us, # of shares, and type of stock. We do not put any dollar values, high, low etc. in our letter.


    Paperwork documenting gift is attached to batch report.
  • John Heizer
    John Heizer
    Ancient Membership 500 Likes 500 Comments Photogenic

    JoAnn Strommen:

    Similar to other posts.  When the org receives gift of stock they are immediately sold. On the donor record we enter the stock/property gift - date, # of shares, type of stock. We also enter that the stock was sold, amount of broker fee etc. Gift is applied against a pledge if appropriate.


    Donor receives a receipt stating date the stock was gifted to us, # of shares, and type of stock. We do not put any dollar values, high, low etc. in our letter.


    Paperwork documenting gift is attached to batch report.

    If you don't include any information about the value of the gift, how does the donor know how much of their pledge was paid-down by the stock gift?

  • John Heizer
    John Heizer
    Ancient Membership 500 Likes 500 Comments Photogenic

    Patti Perdue:

    Does anyone have a policy and procedure for entering stock property gifts in RE that they would be willing to share?

    FYI, there's an entire forum here dedicated to sharing policies and procedure documents.
    https://community.blackbaud.com/forums/viewcategory/168

  • JoAnn Strommen
    JoAnn Strommen Community All-Star
    Ancient Membership 2,500 Likes 2500 Comments Photogenic
    Valid question, John.  Our stock/property gifts tend to be cash gifts. Over 20+ years I can only recall one or two gifts of stock that were applied to a pledge. It was a large, multi-year capital pledge and we included the balance amount of pledge in the letter. (Donor credited with value of stock the day they gifted. Any difference in sale price and broker fees cost of doing business.)
  • Ryan Hyde
    Ryan Hyde
    Tenth Anniversary 1,000 Likes 500 Comments Name Dropper
    Similar to above statements, but I'm surprised nobody has indicated the need to include median value as of the date of sale yet.


    The IRS stipulates (though I can't cite a rule for you - this is just ingrained in me at this point) that the institution's responsibility is to indicate the sale date, the number of shares, the stock symbol, and the median value on that date. Of course, since this is the IRS, the term 'median' doesn't mean what you would think it means. Instead, it means the average of the high and low stock price for that day, which is pretty easy to find on various stock tracking websites (I typically use Yahoo Finance). So you just sum the high price and the low price and divide by two. 


    We also indicate how much we ended up receiving for the sale of the stock, but we're very clear in the letter that this does not necessarily reflect their tax deductable amount and that they should talk to their tax professional. That's how we deal with the question John raised earlier.
  • Jen Claudy
    Jen Claudy
    Tenth Anniversary 1,500 Likes 1000 Comments Name Dropper
    At my last two orgs, we recorded the High, Low, and Median amounts (per Google Finance and as of the date the stock transfer occurred) as Gift Attributes, and listed those in the letter.  Along with a standard statement (appearing in all ack letters) to "please consult your tax professional about the deductibility of your charitable giving."  Issuer, symbol, and number of shares were recorded in the appropriate first-class fields on the Gift Record for Stock/Property Gift Type.

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