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  • 1.  Paying an invoice for a stock gift

    Posted 11-17-2023 03:10 PM

    Hello, 

    We've received a gift of closely held stock. Along with this gift we've received an invoice to pay for the background check of the company. Can this invoice be paid on the backend through our finance department so that the donor receives full gift credit from us but the invoice is then deducted from the gift? Not sure how this should be handled. 

    Thanks



    ------------------------------
    Mariann Whitman
    Williams College
    mkw3@williams.edu
    ------------------------------


  • 2.  RE: Paying an invoice for a stock gift

    Posted 11-17-2023 03:32 PM
    For several reasons, this does not sound right.

    First, closely held stock is often quite difficult to liquidate. It is not publicly traded, so unless you know of a ready buyer, you could be holding onto this for a long time.

    Secondly, I need clarification on the background check component. Williams would need to perform due diligence for any proposed donation of property. So, why is the cost of the background check being tied to the value of the gift?

    The donor should be given credit for the appraised value of the property (which they have paid for) regardless of any internal costs associated with accepting the gift. The receipt, of course, will not reflect any dollar amount.

    However, as noted above, I would only spend gift money once you have sold the property! It could be years before it's sold!

    John (aka the son of a proud Class of '52 Williams graduate!)

    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






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