FundSvcs Community

Hi Michael - This has happened to me regularly at the various orgs I've worked at - clearly the donor was timing their stock gift to avoid receiving the dividends! The dividend was received when the organization owned the stock, not the donor, so the donor should not receive credit for it. I've also never counted the dividend to our database/reflected it in fundraising reports. Finance accounts for that in their system.

But what controls? The date that the dividend check is received, or the date that the dividend is declared by the company?
Original Message----- From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Tracey Mullane Sent: Tuesday, March 05, 2019 12:39 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Dividend check Hi Michael - This has happened to me regularly at the various orgs I've worked at - clearly the donor was timing their stock gift to avoid receiving the dividends! The dividend was received when the organization owned the stock, not the donor, so the donor should not receive credit for it. I've also never counted the dividend to our database/reflected it in fundraising reports. Finance accounts for that in their system.

While the dividend may have been "declared" prior to distribution, they a paying it to the current owner - you would see this on your 1099. It's never a new gift unless the dividend is issued in the prior owner's name and they sign it over to you. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Mar 5, 2019 at 12:54 PM David Chused <dchused@brandeis.edu> wrote: > But what controls? The date that the dividend check is received, or the > date that the dividend is declared by the company? > > > >
Original Message----- > From: Advancement Services Discussion List > [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Tracey Mullane > Sent: Tuesday, March 05, 2019 12:39 PM > To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG > Subject: Re: [FUNDSVCS] Dividend check > > Hi Michael - > > This has happened to me regularly at the various orgs I've worked at - > clearly the donor was timing their stock gift to avoid receiving the > dividends! > > The dividend was received when the organization owned the stock, not the > donor, so the donor should not receive credit for it. I've also never > counted the dividend to our database/reflected it in fundraising reports. > Finance accounts for that in their system. >

In several recent cases, we have received stock dividends months after the donor made their stock gift. We want to thank the donor for the dividend, but we're not sure--does the donor get tax credit for it or do we treat it like a DAF where the donor doesn't get tax credit but we still thank them for facilitating the gift? Thank you!

------------------------------
Trinity Peacock-Broyles
tpeacockbroyles@dlsnc.org
------------------------------

Original Message:
Sent: 03-05-2019 01:06 PM
From: John Taylor
Subject: Re: Dividend check

While the dividend may have been "declared" prior to distribution, they a
paying it to the current owner - you would see this on your 1099. It's
never a new gift unless the dividend is issued in the prior owner's name
and they sign it over to you.

John

John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com
919.816.5903 (cell/text)

Serving the Advancement Community Since 1987


On Tue, Mar 5, 2019 at 12:54 PM David Chused

Original Message:
Sent: 9/25/2020 6:46:00 PM
From: Trinity Peacock-Broyles
Subject: RE: Re: Dividend check

In several recent cases, we have received stock dividends months after the donor made their stock gift. We want to thank the donor for the dividend, but we're not sure--does the donor get tax credit for it or do we treat it like a DAF where the donor doesn't get tax credit but we still thank them for facilitating the gift? Thank you!

------------------------------
Trinity Peacock-Broyles
tpeacockbroyles@dlsnc.org
------------------------------

Original Message:
Sent: 03-05-2019 01:06 PM
From: John Taylor
Subject: Re: Dividend check

While the dividend may have been "declared" prior to distribution, they a
paying it to the current owner - you would see this on your 1099. It's
never a new gift unless the dividend is issued in the prior owner's name
and they sign it over to you.

John

John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com
919.816.5903 (cell/text)

Serving the Advancement Community Since 1987


On Tue, Mar 5, 2019 at 12:54 PM David Chused

Thanks, John. We usually sell the stock the same day we receive it so I don't usually think of us as "owning" the stock, but since we receive the dividend after the gift of stock, you must be right. Would it be ok to send a donor a thank you letter saying, "Thanks to your gift of stock in Feb., we received a dividend of __ in April..." or something like that? Thank you!

------------------------------
Trinity Peacock-Broyles
tpeacockbroyles@dlsnc.org
------------------------------

Original Message:
Sent: 09-25-2020 06:03 PM
From: John Taylor
Subject: Re: Dividend check

The dividends are returns on YOUR investment.  Assuming, that is, the dividend was awarded after the gift of stock.  Therefore, no communication to the donor is required as you owned the stock.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/25/2020 6:46:00 PM
From: Trinity Peacock-Broyles
Subject: RE: Re: Dividend check

In several recent cases, we have received stock dividends months after the donor made their stock gift. We want to thank the donor for the dividend, but we're not sure--does the donor get tax credit for it or do we treat it like a DAF where the donor doesn't get tax credit but we still thank them for facilitating the gift? Thank you!

------------------------------
Trinity Peacock-Broyles
tpeacockbroyles@dlsnc.org

Original Message:
Sent: 03-05-2019 01:06 PM
From: John Taylor
Subject: Re: Dividend check

While the dividend may have been "declared" prior to distribution, they a
paying it to the current owner - you would see this on your 1099. It's
never a new gift unless the dividend is issued in the prior owner's name
and they sign it over to you.

John

John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com
919.816.5903 (cell/text)

Serving the Advancement Community Since 1987


On Tue, Mar 5, 2019 at 12:54 PM David Chused

Original Message:
Sent: 9/28/2020 5:19:00 PM
From: Trinity Peacock-Broyles
Subject: RE: Re: Dividend check

Thanks, John. We usually sell the stock the same day we receive it so I don't usually think of us as "owning" the stock, but since we receive the dividend after the gift of stock, you must be right. Would it be ok to send a donor a thank you letter saying, "Thanks to your gift of stock in Feb., we received a dividend of __ in April..." or something like that? Thank you!

------------------------------
Trinity Peacock-Broyles
tpeacockbroyles@dlsnc.org
------------------------------

Original Message:
Sent: 09-25-2020 06:03 PM
From: John Taylor
Subject: Re: Dividend check

The dividends are returns on YOUR investment.  Assuming, that is, the dividend was awarded after the gift of stock.  Therefore, no communication to the donor is required as you owned the stock.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 9/25/2020 6:46:00 PM
From: Trinity Peacock-Broyles
Subject: RE: Re: Dividend check

In several recent cases, we have received stock dividends months after the donor made their stock gift. We want to thank the donor for the dividend, but we're not sure--does the donor get tax credit for it or do we treat it like a DAF where the donor doesn't get tax credit but we still thank them for facilitating the gift? Thank you!

------------------------------
Trinity Peacock-Broyles
tpeacockbroyles@dlsnc.org

Original Message:
Sent: 03-05-2019 01:06 PM
From: John Taylor
Subject: Re: Dividend check

While the dividend may have been "declared" prior to distribution, they a
paying it to the current owner - you would see this on your 1099. It's
never a new gift unless the dividend is issued in the prior owner's name
and they sign it over to you.

John

John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com
919.816.5903 (cell/text)

Serving the Advancement Community Since 1987


On Tue, Mar 5, 2019 at 12:54 PM David Chused

Hello - I have what I believe to be a rather unusual question. We recently received a gift of stock from a donor. Prior to liquidating the stock, we received a dividend payment for these stock holdings. My gut is that we do NOT book this dividend as an additional gift, as we already set a value for the stock on the day we received it. Can you please let me know if this is how you would view this situation as well, or if you would view it differently? Many thanks, Michael Halverson, Ed.D. Senior Director of Advancement Services Loyola University Chicago T. 312-915-7283 | C. 320-363-4987<tel:320-363-4987> mhalverson@luc.edu<mailto:mhalverson@luc.edu> | www.luc.edu/advancement<http://www.luc.edu/advancement>

Thanks, all! Michael Halverson, Ed.D. Senior Director of Advancement Services Loyola University Chicago T. 312-915-7283 | C. 320-363-4987<tel:320-363-4987> mhalverson@luc.edu<mailto:mhalverson@luc.edu> | www.luc.edu/advancement<http://www.luc.edu/advancement> From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Tuesday, March 05, 2019 1:07 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Dividend check While the dividend may have been "declared" prior to distribution, they a paying it to the current owner - you would see this on your 1099. It's never a new gift unless the dividend is issued in the prior owner's name and they sign it over to you. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Mar 5, 2019 at 12:54 PM David Chused <dchused@brandeis.edu<mailto:dchused@brandeis.edu>> wrote: But what controls? The date that the dividend check is received, or the date that the dividend is declared by the company?
Original Message----- From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of Tracey Mullane Sent: Tuesday, March 05, 2019 12:39 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Dividend check Hi Michael - This has happened to me regularly at the various orgs I've worked at - clearly the donor was timing their stock gift to avoid receiving the dividends! The dividend was received when the organization owned the stock, not the donor, so the donor should not receive credit for it. I've also never counted the dividend to our database/reflected it in fundraising reports. Finance accounts for that in their system.