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  • 1.  Two stock gift questions

    Posted 24 days ago

    Hi everyone -

    I have two stock gift questions that I haven't had like this before:

    1) Stock received as an estate gift and booked below $1 as the shares were worth nothing when received (during campaign). We held on to them and now they are actually worth 7 figures. How are we to book this correctly in the donor database?? Taking the original bequest off the books and booking it as a new bequest realization? I could adjust the original value as our campaign reporting would include that year, but it doesn't feel right with this kind of value difference.

    2) Stock received CYE, donor asked for exception to not sell immediately as they weren't sure what to support. Stock has seen significant gains since then. How are we to book this correctly in the donor database? The gains are enough to use for a new fund -- how would we handle that, given that the gains wouldn't really be in the CRM? 

    Thank you for your guidance!

    Saskia



    ------------------------------
    SASKIA H. SAWYER
    Associate Vice President for Advancement Services
    Boise State University Foundation
    Phone: (208) 426-3339 | Mobile: (303) 507-8251
    Email: saskiasawyer@boisestate.edu
    ------------------------------


  • 2.  RE: Two stock gift questions

    Posted 24 days ago
    Hi Saskia,

    In both scenarios, you should record the gift at the FMV on the date it was received.

    According to CASE Global Standards (3.3.3 Marketable Securities): "Value marketable securities based o the date of ownership of transfer [...] Neither losses nor gains realized by the institution's sale of the securities [...] should affect the value reported."

    Gains are considered investment performance rather than philanthropy. Therefore, in neither scenario should the appreciation be recorded as new giving.

    1. For the bequest realization, you should not rebook the gift or count the increased value in campaign totals.
    2. For the donor request, you certainly create the donor-designated fund, but the original gift value remains the FMV at the time it was received into the Foundation's account.



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