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Stock remainder gift

  • 1.  Stock remainder gift

    Posted 25 days ago
    Hi, do you use any special language for a stock remainder gift? Our donor paid off their pledge via stock and then there was $476 leftover, which we wanted to thank them for as well but I wasn't sure how to phrase the acknowledgment letter. Thanks!

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    Trinity Peacock-Broyles
    tpeacockbroyles@dlsnc.org
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  • 2.  RE: Stock remainder gift

    Posted 25 days ago
    It would be best if you only described gifts of stock in your receipt/acknowledgment - never value (see IRS Publications 1771).  Publication 561 explains that valuing property gifts is the responsibility of the donor.  Therefore, your receipt should state the name of the security and number of shares only.

    Regarding the "overpayment," you could use this as an opportunity to steward the donor and ask them where they would like to direct the overage - although it is pretty common to put the difference in the same fund.  So, you could say in the receipt something like, "Thank you for your gift of X shares of Y stock to satisfy your pledge to 123 Fund.  As the value of the security slightly overpaid your pledge, we have credited the difference to 123 Fund as well.  Please seek guidance from your tax advisor to determine the deductible value of your gift."

    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






  • 3.  RE: Stock remainder gift

    Posted 22 days ago
    Thanks, John. We don't value the stocks (we give a description like you mentioned) but I wasn't sure what to do about the remainder. It sounds like we shouldn't value that either, which is helpful. I really appreciate it!

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    Trinity Peacock-Broyles
    tpeacockbroyles@dlsnc.org
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