We have someone who generously donated stock. In the process of switching names and cashing it out, the value of the stock went from $67 per share to $57 per share. She has asked that she receive credit for what the value of the stock was at the time of donation ($67) instead of the value of the stock at the time of payout ($57). Anyone had this situation before?
Thanks and God Bless!
Bridgett
Stock Donation - HELP!!
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Re: Stock Donation - HELP!!
Yes .. and what we have done in the past was issue a letter on church letterhead from the Treasurer to that person, listing the number of shares, and price per share at the time of donation. This takes care of the IRS requirements for her.kirklabw68 wrote:We have someone who generously donated stock. In the process of switching names and cashing it out, the value of the stock went from $67 per share to $57 per share. She has asked that she receive credit for what the value of the stock was at the time of donation ($67) instead of the value of the stock at the time of payout ($57). Anyone had this situation before?
Thanks and God Bless!
Bridgett
For a full discussion of this situation covering the receipt for the contributor, and the issue of the changed stock price for the church, check this thread:
http://www.powerchurch.com/forum/viewtopic.php?t=2129
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
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kirklabw68
- Posts: 3
- Joined: Fri Aug 08, 2008 12:30 am
Stock Donation
Here is what we do:
1. We enter the transaction at the date the stock is received via the fund accounting mode (transaction, not contribution). We debit the income account and credit an cash account, setup for our brokerage on the chart of accounts.
2. We do a letter on letterhead that shows receipt of stock with the date received and number of shares and the value per share at the close of the day that we received it.
3. We issue a sell order at our church right away, but if there are changes in the value of the stock we have an account on the chart called "GAIN/LOSS STOCKS" near our bank fees account (about 5400 in the chart.)
4. Finally when the stock sells we adjust via the fund accounting transactions from the brokerage account to the cash account including any fees for commissions (bank fees) or other gain/loss fees.
NOTE: For us sometimes the transaction doesn't happen before month end and we have to adjust the value at monthend to reconcile the account with the brokerage.
Because we don't do any of this through the contributions module we have a note on the contribution statements saying that the contributions above don't include stock gifts and that those are recognized under a separate letter.
I hope this helps!
1. We enter the transaction at the date the stock is received via the fund accounting mode (transaction, not contribution). We debit the income account and credit an cash account, setup for our brokerage on the chart of accounts.
2. We do a letter on letterhead that shows receipt of stock with the date received and number of shares and the value per share at the close of the day that we received it.
3. We issue a sell order at our church right away, but if there are changes in the value of the stock we have an account on the chart called "GAIN/LOSS STOCKS" near our bank fees account (about 5400 in the chart.)
4. Finally when the stock sells we adjust via the fund accounting transactions from the brokerage account to the cash account including any fees for commissions (bank fees) or other gain/loss fees.
NOTE: For us sometimes the transaction doesn't happen before month end and we have to adjust the value at monthend to reconcile the account with the brokerage.
Because we don't do any of this through the contributions module we have a note on the contribution statements saying that the contributions above don't include stock gifts and that those are recognized under a separate letter.
I hope this helps!
Angie Alden
Christ Community Church
Wilmington NC
Christ Community Church
Wilmington NC