FundSvcs Community

Hello esteemed colleagues, 

We'd love your expert opinion on our approach to the following scenario:

A donor asked us to accept a sizable gift of an alternative investment vehicle - shares of a reinsurance fund - where the fund prohibits sales except for a few days each quarter (so 4 opportunities to sell per year). Our Gift Acceptance Committee evaluated the risk and approved accepting the gift. Our question for you is about gift valuation:

We reviewed IRS pub 526, and it seems like we should value the gift based on the sale price data available for the date the shares came into the org's possession. This data is published, though it does not have a high/low; there is one value for the date in question, and the value changes slowly (so you'll see the same price for 4-8 days, and then a slight change). 

We also had fun trying to force the transaction into The Raiser's Edge, which doesn't allow partial shares or ticker tape symbols in excess of 4 characters, even though this one has 5. But that was just mechanics to get it into the database, with copious documentation on the actual gift and valuation data & process.

Do you have any recommendations or resources for strengthening our approach to valuing this gift? We are documenting our decisions and requesting final approval on our approach from our Gift Acceptance Committee as well.

Many thanks in advance!

The Gift Administration team at LPFCH

Hello esteemed colleagues, 

We'd love your expert opinion on our approach to the following scenario:

A donor asked us to accept a sizable gift of an alternative investment vehicle - shares of a reinsurance fund - where the fund prohibits sales except for a few days each quarter (so 4 opportunities to sell per year). Our Gift Acceptance Committee evaluated the risk and approved accepting the gift. Our question for you is about gift valuation:

We reviewed IRS pub 526, and it seems like we should value the gift based on the sale price data available for the date the shares came into the org's possession. This data is published, though it does not have a high/low; there is one value for the date in question, and the value changes slowly (so you'll see the same price for 4-8 days, and then a slight change). 

We also had fun trying to force the transaction into The Raiser's Edge, which doesn't allow partial shares or ticker tape symbols in excess of 4 characters, even though this one has 5. But that was just mechanics to get it into the database, with copious documentation on the actual gift and valuation data & process.

Do you have any recommendations or resources for strengthening our approach to valuing this gift? We are documenting our decisions and requesting final approval on our approach from our Gift Acceptance Committee as well.

Many thanks in advance!

The Gift Administration team at LPFCH

Hello esteemed colleagues, 

We'd love your expert opinion on our approach to the following scenario:

A donor asked us to accept a sizable gift of an alternative investment vehicle - shares of a reinsurance fund - where the fund prohibits sales except for a few days each quarter (so 4 opportunities to sell per year). Our Gift Acceptance Committee evaluated the risk and approved accepting the gift. Our question for you is about gift valuation:

We reviewed IRS pub 526, and it seems like we should value the gift based on the sale price data available for the date the shares came into the org's possession. This data is published, though it does not have a high/low; there is one value for the date in question, and the value changes slowly (so you'll see the same price for 4-8 days, and then a slight change). 

We also had fun trying to force the transaction into The Raiser's Edge, which doesn't allow partial shares or ticker tape symbols in excess of 4 characters, even though this one has 5. But that was just mechanics to get it into the database, with copious documentation on the actual gift and valuation data & process.

Do you have any recommendations or resources for strengthening our approach to valuing this gift? We are documenting our decisions and requesting final approval on our approach from our Gift Acceptance Committee as well.

Many thanks in advance!

The Gift Administration team at LPFCH