We are of two minds here -- one is just to list the number of shares, name of stock, and date transferred to the Academies.  The other is to provide the average of the hi and low of the date of transfer.   Good arguments on both sides.  Looking for a vote!

Thanks

Cheryl Czapp

National Academies

Washington, DC

 We include the high, low and close prices of the day that the stock transferred into our account.

We include the following: 

Stock donated:                                     17 Shares of John Hancock

U.S. Global Leader Growth Fund

Date of Donation:                                 1/3/2008

Share value @ donation date:                $481.44

 We also include the high, low and close prices of the day that the stock transferred into our account.

We include  the date of transfer, High, Low and Mean price and calculate the value of the stock.  The number of shares x mean price = value.  If the stock is paying on a pledge we indicate the balance/overage (if any) of the pledge. 

IRS Publication 1771 specifically says that for a non-cash contribution you should provide a "description (but NOT the value)" on your receipt.  A stock gift is a non-cash contribution therefore I would provide only the number of shares and the issuer of the shares.  I guess one could argue that the High and Low could be descriptors but I think it comes too close to providing a value and therefore do not provide it.

Melissa Graves:

IRS Publication 1771 specifically says that for a non-cash contribution you should provide a "description (but NOT the value)" on your receipt.  A stock gift is a non-cash contribution therefore I would provide only the number of shares and the issuer of the shares.  I guess one could argue that the High and Low could be descriptors but I think it comes too close to providing a value and therefore do not provide it.

I would disagree with you on that. Because as soon as the stock is transferred to a non-profit (at least most non-profits) they turn around and sell it. Therefore it does have a monetary value that is recorded. For in-kind gifts the value is to be determined by the donor, however with stock the value is a set amount, unless the non-profit keeps the stock. 

This is an example of what our acknowledgement looks like - I had 'The mean value of your gift that we used for internal purposes is $x'  and my boss made me take that out. I would prefer to have that wording personally - but he and our in house writer overruled me even though I made the legality arguement.

Laura, feel free to disagree with me but I do not recommend disagreeing with the IRS.  I encourage you to call the IRS (and/or your auditors) and ask for verification as you should as a responsible non-profit understand these rules and get a professional opinion.

My understanding from the IRS and from the national group of fund services professionals at www.fundsvcs.org, is that if someone donates a house (or a boat, or a painting, or a pair of shoes, or shares of stock) to your organization and you turn around and sell it that does not make it a cash contribution.  It is a gift of property (non-cash in IRS terminology).  Your organization can choose to keep the stock and continue to invest it - you have no cash - you have stock as an asset you own.  For the short period of time the stock is in your name before you sell it and definitely at the time it is donated - it is an asset - not cash.

Hi there,

My organization does the same as Laura's.  All of the organizations I have worked for seem to follow that same procedure.  We indicate the amount of the shares, name of the stock, date of the donation, the stock gift amount. At my current organization, we had to make one change for an Auditor of a donor.  She needed the letter to say stock contribution instead of cash contribution, which is the language that we used in the gift receipts.  So we just make sure to use that specific wording for stock gifts.