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  • 1.  Primary vs. Composite Exchange for valuation of Stock

    Posted 05-25-2023 07:53 AM

    I have a donor who has made a pledge payment with publicly held stock.  The donor is valuing the stock based on primary exchange values while we valued the stock based on composite values.  There is a difference in the value, which is actually in our favor as it's less than our own valuation. Has anyone ever come across this before?  IRS Publication 561 has some mention of this, but I'm still a little unclear.   

    Thanks, 
    Michael



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    Michael Manning
    University of New England
    Mmanning6@une.edu
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  • 2.  RE: Primary vs. Composite Exchange for valuation of Stock

    Posted 05-25-2023 08:04 AM
    I have not but this is one of your concern. What the donor claims for deduction purposes is between them and the IRS. You follow your own internal guidelines.

    Stick with your internal policies!

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


  • 3.  RE: Primary vs. Composite Exchange for valuation of Stock

    Posted 05-25-2023 08:22 AM
    I should add that the official receipt should reflect only the name of the stock and the number of shares. No dollar values should ever be indicated.

    However, off-line you will want to indicate the balance on the pledge based on YOUR valuation methodology.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


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