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Stock Donation and Sale - with SEC Involvement - Protect the Price

  • 1.  Stock Donation and Sale - with SEC Involvement - Protect the Price

    Posted 06-13-2022 09:51 AM
    Good morning to everyone and especially my Finance and Stock gurus!!!!

    I've been asked to research a scenario for either similar experience or some best practice context.

    Donor has stock that he wants to fulfill pledge with.  By doing so over a specified timeframe, the goal is to
    not 'tank' the stock price, etc.  Current VP has had a similar scenario at another institution whereby the SEC was involved and made aware of the
    timing, etc. so as to protect the stock value.

    If anyone has had this experience or knowledge of the proper communication streams that should occur, I would be most grateful for the info.

    Happy Monday everyone!!
    T.

    ------------------------------
    Teresa Goddard
    Director Development Services
    DePauw University
    teresagoddard@depauw.edu
    ------------------------------


  • 2.  RE: Stock Donation and Sale - with SEC Involvement - Protect the Price

    Posted 06-13-2022 09:55 AM
    We had a similar situation at Duke.  Counsel and the SEC insisted that it was the donor's responsibility to donate shares over a period of time.  They had the responsibility of determining when or whether to make a gift.  When the shares were transferred, Duke could decide when or whether to sell the shares.  Any prior agreement regarding our "holding" off on selling shares would result in donor-control issues.  Meaning, the gift was not a gift until the donor did not require any timing considerations by us.

    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




    Original Message


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