FundSvcs Community

 View Only

  • 1.  Gift of Cashless Warrant

    Posted 01-27-2021 01:04 PM
    Greetings,

    We have a donor who has signed over a cashless warrant for a particular stock (as of 12/31/20).  Does anyone have experience with a gift of this nature?  I'd be grateful for any expertise.

    Many thanks,
    Shannon

    ------------------------------
    Shannon Schulz
    Senior Director of Development Operations
    Carleton College
    sschulz@carleton.edu
    ------------------------------


  • 2.  RE: Gift of Cashless Warrant

    Posted 01-27-2021 01:12 PM
    This sounds to me like it's going to function as a gift of stock options.  If so (you will want to consult with your CFO), there's hardly any tax-deduction for your donor.  ANd, therefore, almost no value to count.  We'd need to see all of the transfer documents to offer much guidance.  But if you follow the Black-Scholes calculation methodology, you will be able to determine a reliable value.  You'll need to know the current value, exercise price, years to maturity, etc.  Often, you are never even able to covert the security.

    Grab all of your paperwork and go visit with your CFO or your stockbroker for further information.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






Related Content