Stock Gift Entry

Chandra,

This would be useful for us too.  We actually use a custom screen for tracking this information and can enter as many stock gifts as we wish; however, I manually enter the contribution ref id after the gift has been processed, then run a custom stock utility update which auto-populates the details of the corresponding gift to the custom stock screen.  At present, we are not reporting on any of this information - it is mostly there for reference - but I would say that I think many of us agree that we would love for this to be included with the contribution details.

We also like to track:
Stock Name
Mean of High and Low
Valuation Date
Donor Credit Value
Sale Date
Principal Amount
Fees
Actual Payment
Gain/Loss
Stock-specific notes

Thank you for sharing!

Amber

Hi Amber. Are you able to enter more than 1 stock transaction to a single gift or pledge?  If so, how do you have it set up?

Hi all,

Thanks for the suggestions!  We at the NextGen team love to hear the feedback about what would make your lives easier.  As you have seen, this sort of feedback is making its way into real functionality starting with Version 11.  So, keep it coming.

One note - Chandra, you mentioned this would be great for Version 11.  We are happy to consider this for the NextGen project in general, but we are actually quickly tying up the final pieces of Version 11 and sending it out for alpha testing in another month or so.  Given that we are on the tail end of the Version 11 development cycle, we are primarily focused on bug fixes and usability feedback from the Sandbox at this point - not brand new functionality.

So, bottom line - thanks for the feedback, we'll keep it in mind for a future version, but not v11 :)

Thank you!

Andrew

Hi Andrew,

Thanks for the quick reply!  Could this be an enhancement in v11??

Sorry we didn't have a chance to chat in Orlando!

Chandra

I also just realized that using the payment screen may not work.  If one stock transaction is spread over multiple gifts it would be impossible to accurately break it down (number of shares).  I think I'm going to explore the custom screen on the patron level, rather than at the contribution level, as that allows multiple entries.

Additional thoughts are welcome!

Chandra,

This image will probably be a little blurry, but I've also uploaded it as a JPG and you can get to it through my profile page.  Under "Contribution Details" I enter in the Ref No of the contribution after it has been processed.  Then I run a custom update utility that fills in the rest of the details from the contributions tab.  I can enter as many of these on a record as I want, and enter the reference number for each entry.  There are multiple ref no lines here in case the gift is applied to multiple funds. 

(some fields are manual entry and others auto-populate after the utility is run)

So... here would be the four basic scenarios:
1. Situation: Donor gives one stock gift to one fund
Solution: I add one custom stock entry for the one gift and fill in the one ref numbers post gift entry and run custom stock gift utility

2. Situation: Donor gives one stock gift to multiple funds
Solution: I add one custom stock entry for the one gift and fill in multiple ref numbers post gift entry and run custom stock gift utility

3. Situation: Donor gives multiple stocks for a gift to one fund
Solution: I add a custom stock entry for each different stock but use the same ref number post gift entry and run custom stock gift utility

4. Situation: Donor gives multiple stocks for a gift to multiple funds
Solution: I add a custome stock entry for each individual and unique stock and then add the ref numbers post gift entry where applicatble and then run the custom stock gift utility

I do occassionally run into the issue where a donor gives 20 or so different stocks for one gift, and those are painful to enter, I'll admit, but worth having the information in the system.  We limited each stock entry to three gift reference numbers because it is a rare situation that I have to use more, and if that is the case, then I just add another entry with the same information and notes that it is the same stock, not a duplicate, with multiple allocations and references to the other entry.

Cons
There have been two main cons to our system - the notes box does not wrap the text and Tessitura does not automatically show that there is a scroll bar if there are multiple entries.  You have to zoom out to see all of the stock entries and then zoom in to the one you wish to view.

Of course there are other cons - like prefering this to be incorporated into gift processing, but I just wanted to limit my "con" focus to potential issues within our control at this time.

If you're interested, I could obtain more information from our IT department on how this was accomplished.

Amber

Thanks Amber! I'll review this.  My custom screen is in the contribution module, but as I mentioned, you can't enter multiple lines.  I think I'm leaning now toward the custom screen on the constituent level.

While on the topic of stock gifts, I wanted to know the amount that other organizations record in Tessitura if the gift of stock or securities is paid toward a pledge.  For example, John Doe makes a $10,000 pledge and at a later date donates stock which is valued at $9,800 (Mean value of the high and low on the gift date).  The broker proceeds are $9,500 from change in price, fees and commissions.  In my experience, organizations have recorded the value of $9,800 toward the pledge, leaving a balance of $200.  Do others do that, or would you record the $9,500 broker proceeds toward the $10,000 pledge, leaving a $5,000 balance?  

I would love to hear how others do this.  If any organizations record the gift value, does that work with your customized stock gift screens?

At other organizations, I would have created 2 payments, one with a payment type of Check and the other with a payment type of Stock Difference.  The stock difference is recorded by Finance not as cash but just as a difference which tends to balance out over the year.

Thanks!

Tony

Hi everybody,

My organization is in the process of converting to Tessitura from Raiser's Edge, and I'm very glad to have found this discussion, since I need to solve this problem. I like the custom constituent screen as a short-term workaround, but would love to see this addressed in a future version.

I agree with Amber that it's important for the future Stock functionality to handle all four of her scenarios (1 stock gift to one pledge, 1 stock gift to multiple pledges, multiple stock gifts to 1 pledge, and multiple stock gifts to multiple pledges.)

It's also important to be able to handle the issue raised by Tony about accounting for gain/loss and fees with respect to paying pledges. The stock handling functionality needs to create GL transactions for the value of the asset itself, the gain and loss, and the fees. Since stock is not always sold, there should be a way to indicate whether the asset was sold or not. For cases where it was sold (especially if it was sold immediately by the broker as a standard business rule) the system would generate three sets of GL transactions: that would create sufficient flexibility to accommodate most organizations' business practices.  The amount applied to the pledge balance would be the actual asset value (since that's accurate from the donor's perspective and in terms of enforceable pledges). The gain/loss and expenses transactions could be set up for whatever GL accounts are appropriate for the organization. Here's what it would look like:

In cases where the business rule is that stock is immediately sold by the broker upon receipt, FASB rules allow the GL to simply reflect the net proceeds, so some organizations don't have or use Gain/Loss and Expense accounts. For those organizations, the Gain/Loss Account and the Expense account can simply be set to be the same as the Income account for the fund. That way the Pledge gets paid off with the correct amount, there's no discrepancy between Finance and Development on the outstanding pledge amount, but Finance isn't maintaining extra GL Funds. There will be a discrepancy between the total income for the Fund between the two systems, but it can be accounted for with the Gain/Loss and Expense amounts.

Since we're still in the throes of conversion, I don't yet know enough about the backend Tessitura structure to make recommendations on actual implementation. But I'm happy to help in any way I can.

Thanks!

-Galen

Galen,

One other resource you might have a look at are the conference archives.  You'll find presentations from 2006 through 2012 in there and I know there is at least one presentation on stock gifts because I did one back in 2008.  You can download that one here.

Some of these are peer to peer presentations and others are training by the Tessitura staff.

Dale