FundSvcs Community

Hello all of you wonderfully helpful people, We recently had a donor’s gift of stock go to the wrong organization (same name, different state). The other nonprofit sold the stock immediately as per their policy. We’ve worked with the donor’s financial advisor and the other nonprofit to get the funds sent to us in the form of a check from the other nonprofit. We’d like to provide the donor with a tax receipt directly, and I seem to recall from a previous conversation that this can happen if there is a sufficient paper trail documenting why we didn’t receive the gift directly. However, since the sale of securities is involved, I’m wondering if there are additional steps we need to take. My thoughts are that we can get, on paper, declarations from the donor’s advisor and the other nonprofit that the stock was sent and sold in error, and that the nonprofit then forwarded us the funds. We’d then provide the donor with our standard stock receipt (i.e., in-kind receipt describing the type and number of stock given). Is there anything I’m missing here? I cannot find the other conversation on this topic to see if my memory is serving me well. I also imagine that it will be recommended that we speak with our legal counsel about this, but my colleagues are extremely hesitant to ever bring counsel into the discussion. Thanks for your wisdom, Keith

The only thing you might be missing is that the other organization has probably already issued a receipt. So if you do issue a receipt then it will need to be extremely clear *on the receipt *that you are replacing the receipt that was sent in error. From the donor's perspective, the date of gift remains unchanged. But your receipt need not reflect that date. As you note, your receipt will reflect the name of stock and number of shares they donated - and affirm/confirm what fund the proceeds were distributed to. 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 Mon, Jan 28, 2019 at 12:59 PM Keith Padgett <kpadgett@gleaners.org> wrote: > Hello all of you wonderfully helpful people, > > We recently had a donor’s gift of stock go to the wrong organization (same > name, different state). The other nonprofit sold the stock immediately as > per their policy. We’ve worked with the donor’s financial advisor and the > other nonprofit to get the funds sent to us in the form of a check from the > other nonprofit. > > We’d like to provide the donor with a tax receipt directly, and I seem to > recall from a previous conversation that this can happen if there is a > sufficient paper trail documenting why we didn’t receive the gift directly. > However, since the sale of securities is involved, I’m wondering if there > are additional steps we need to take. > > My thoughts are that we can get, on paper, declarations from the donor’s > advisor and the other nonprofit that the stock was sent and sold in error, > and that the nonprofit then forwarded us the funds. We’d then provide the > donor with our standard stock receipt (i.e., in-kind receipt describing the > type and number of stock given). > > Is there anything I’m missing here? I cannot find the other conversation > on this topic to see if my memory is serving me well. I also imagine that > it will be recommended that we speak with our legal counsel about this, but > my colleagues are extremely hesitant to ever bring counsel into the > discussion. > > Thanks for your wisdom, > Keith >

Thank you, John! I forgot to mention that the other organization has confirmed with us that they did not send a receipt for the gift, so we're all good there. On Mon, 28 Jan 2019 13:12:01 -0500, John Taylor <johntaylorconsulting@GMAIL.COM> wrote: >The only thing you might be missing is that the other organization has >probably already issued a receipt. So if you do issue a receipt then it >will need to be extremely clear *on the receipt *that you are replacing the >receipt that was sent in error. > >From the donor's perspective, the date of gift remains unchanged. But your >receipt need not reflect that date. As you note, your receipt will reflect >the name of stock and number of shares they donated - and affirm/confirm >what fund the proceeds were distributed to. > >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 Mon, Jan 28, 2019 at 12:59 PM Keith Padgett <kpadgett@gleaners.org> >wrote: > >> Hello all of you wonderfully helpful people, >> >> We recently had a donor’s gift of stock go to the wrong organization (same >> name, different state). The other nonprofit sold the stock immediately as >> per their policy. We’ve worked with the donor’s financial advisor and the >> other nonprofit to get the funds sent to us in the form of a check from the >> other nonprofit. >> >> We’d like to provide the donor with a tax receipt directly, and I seem to >> recall from a previous conversation that this can happen if there is a >> sufficient paper trail documenting why we didn’t receive the gift directly. >> However, since the sale of securities is involved, I’m wondering if there >> are additional steps we need to take. >> >> My thoughts are that we can get, on paper, declarations from the donor’s >> advisor and the other nonprofit that the stock was sent and sold in error, >> and that the nonprofit then forwarded us the funds. We’d then provide the >> donor with our standard stock receipt (i.e., in-kind receipt describing the >> type and number of stock given). >> >> Is there anything I’m missing here? I cannot find the other conversation >> on this topic to see if my memory is serving me well. I also imagine that >> it will be recommended that we speak with our legal counsel about this, but >> my colleagues are extremely hesitant to ever bring counsel into the >> discussion. >> >> Thanks for your wisdom, >> Keith >> >