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Dividend check

  • 1.  Dividend check

    Posted 03-05-2019 11:39 AM
    Hi Michael - This has happened to me regularly at the various orgs I've worked at - clearly the donor was timing their stock gift to avoid receiving the dividends! The dividend was received when the organization owned the stock, not the donor, so the donor should not receive credit for it. I've also never counted the dividend to our database/reflected it in fundraising reports. Finance accounts for that in their system.


  • 2.  Re: Dividend check

    Posted 03-05-2019 11:44 AM
    But what controls? The date that the dividend check is received, or the date that the dividend is declared by the company?


  • 3.  Re: Dividend check

    Posted 03-05-2019 01:07 PM
    While the dividend may have been "declared" prior to distribution, they a paying it to the current owner - you would see this on your 1099. It's never a new gift unless the dividend is issued in the prior owner's name and they sign it over to you. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Mar 5, 2019 at 12:54 PM David Chused


  • 4.  RE: Re: Dividend check

    Posted 25 days ago
    In several recent cases, we have received stock dividends months after the donor made their stock gift. We want to thank the donor for the dividend, but we're not sure--does the donor get tax credit for it or do we treat it like a DAF where the donor doesn't get tax credit but we still thank them for facilitating the gift? Thank you!

    ------------------------------
    Trinity Peacock-Broyles
    tpeacockbroyles@dlsnc.org
    ------------------------------



  • 5.  RE: Re: Dividend check

    Posted 25 days ago
    The dividends are returns on YOUR investment.  Assuming, that is, the dividend was awarded after the gift of stock.  Therefore, no communication to the donor is required as you owned the stock.

    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







  • 6.  RE: Re: Dividend check

    Posted 22 days ago
    Thanks, John. We usually sell the stock the same day we receive it so I don't usually think of us as "owning" the stock, but since we receive the dividend after the gift of stock, you must be right. Would it be ok to send a donor a thank you letter saying, "Thanks to your gift of stock in Feb., we received a dividend of __ in April..." or something like that? Thank you!

    ------------------------------
    Trinity Peacock-Broyles
    tpeacockbroyles@dlsnc.org
    ------------------------------



  • 7.  RE: Re: Dividend check

    Posted 22 days ago
    There's nothing wrong - ever - in thanking a donor!

    But as with the original security gift it's probably best to leave any mention of specific amounts.  This will not be going on their record anyway.  So the amount should not matter to them.

    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







  • 8.  Dividend check

    Posted 03-05-2019 04:30 PM
    Hello - I have what I believe to be a rather unusual question. We recently received a gift of stock from a donor. Prior to liquidating the stock, we received a dividend payment for these stock holdings. My gut is that we do NOT book this dividend as an additional gift, as we already set a value for the stock on the day we received it. Can you please let me know if this is how you would view this situation as well, or if you would view it differently? Many thanks, Michael Halverson, Ed.D. Senior Director of Advancement Services Loyola University Chicago T. 312-915-7283 | C. 320-363-4987


  • 9.  Re: Dividend check

    Posted 03-05-2019 08:46 PM
    Thanks, all! Michael Halverson, Ed.D. Senior Director of Advancement Services Loyola University Chicago T. 312-915-7283 | C. 320-363-4987