Stock Gifts

[Walker]

Does PC have a provision for receipt of gifts of securities and then recognition of gain or loss on the sale of securities where the donor gets credit for the value of the securities on the date of gift and not the net cash?

[NeilZ]

Does PC have a provision for receipt of gifts of securities and then recognition of gain or loss on the sale of securities where the donor gets credit for the value of the securities on the date of gift and not the net cash?

No it does not.

That said, at my last church what the Financial Secretary did was first post the offerings for the past week to Funds Accounting. Then create a Contributions Entry for the donor based on the price information given by the Treasurer, then post again, but this time only to Contributions, not to FA.

This gave the donor the amount of the donation as part of their end-of-year report.

[adrake01]

Our treasurer says that the amount of the stock could have changed from when you redeemed and when they released it to you, so if you post the amount you actually received, it may not be the actual value of the stock at the time the donor released it to you. So he will not post any stock gifts in PowerChurch

[NeilZ]

Our treasurer says that the amount of the stock could have changed from when you redeemed and when they released it to you, so if you post the amount you actually received, it may not be the actual value of the stock at the time the donor released it to you. So he will not post any stock gifts in PowerChurch

I can understand that, however, if you notice what I mentioned above, the actual value of the stock at the time is entered in Powerchurch contributions under a special contribution fund number. This amount is only posted in Contributions and is not entered in Funds Accounting.

Thus the contributor gets the full amount of their contribution on the date of donation on the end-of-year report, but Funds Accounting gets the actual amount upon redemption.

[emellesee]

I would be careful about issuing a receipt for an amount that does not match your bank records. However, a way to deal with this would be to post the contribution for the amount the receipt should legally be issued for. Then, set up accounting lines for stock/securities appreciation and depreciation. You can then do a journal entry using one of those lines to account for the difference between the amount of the tax receipt and the amount deposited to your bank account. This would allow you keep everything in PowerChurch and also make things transparent for audits.

My two cents,
ML