stock contributions

nlehrlich · Post by **nlehrlich** » Sat Mar 26, 2005 9:12 am

Donation of Stock to your Church. What entries are made to reflect the gift value on date of donation, and what entry is made to reflect the sales value of the stock three days later? Which value would be put into the pledge and contributions? Thanks for the help.

Randy B · Post by **Randy B** » Mon Mar 28, 2005 11:30 am

I believe you need to consult IRS publication 561. Specifically pages 2 and 5 of that publication address your question. The entry at the date of donation should be a debit to the asset stock and a credit to a revenue account. When you sell the stock, the debit would be to cash and the credit to the stock account. If you the two do not equal which is likely due to market fluctuation, you could debit loss on sale or credit gain on sale. You could also use miscellaneous expense and miscellaneous income instead of the loss/gain or sale accounts.