Connect a securities donation to custody, valuation and acknowledgment

For a securities donation, match the donor's instructions with the charity's actual custody record. Retain the security name and identifier, quantity, receiving account, transfer reference and relevant dates. A donor's message that a transfer was requested does not establish that the shares have arrived or identify which of several incoming transfers belongs to that donor.

Have fundraising and finance resolve unmatched receipts together using the custodian's permitted information process. Avoid sending full brokerage statements broadly to identify one gift. Keep donor restrictions and acceptance approvals with the receipt record so finance knows whether the gift carries conditions that need review.

Ask the accounting reviewer to determine the recognition date and measurement under the charity's reporting framework. Supply custody evidence and the market information for the specific security and relevant date. A ticker alone may be insufficient where share classes, restrictions or thin trading affect the analysis.

Retain the price source, market, currency and calculation used. If the security is not readily traded, identify that limitation and obtain the valuation support the reviewer requires. A donor's estimate can be part of the correspondence without becoming the charity's accounting conclusion.

For an illustrative posting review, assume the accountant approves recognition of 75 shares at USD40 each, or USD3,000. The quantity and approved price should remain visible even if a later brokerage report shows only the sale proceeds. This example illustrates a record calculation, not a prescribed valuation method or a donor deduction.

If the charity sells the securities, preserve the authorization, trade confirmation, settlement evidence and fees. Match the shares sold to the gift's custody record and explain any remaining quantity. Check corporate actions or other movements before interpreting a different share count as an unexplained loss.

Continuing the hypothetical example, a later sale produces USD3,090 before a USD15 fee and USD3,075 cash. Finance needs the original USD3,000 recognized amount, the USD90 difference before the fee, and the separate fee record for the accountant's treatment. Replacing the original gift entry with the net cash receipt would erase those events.

Reconcile the broker's cash settlement to the charity's bank or investment cash account. A transfer between those accounts should not create another contribution. If securities remain at period end, retain their quantity and the review supporting the closing measurement.

IRS Publication 1771 calls for a description of contributed property, without stating its fair market value, in the charitable acknowledgment. It also requires appropriate statements about goods or services provided in return. Use the verified security and quantity details, and have the acknowledgment reviewed where the donor received anything in exchange.

Keep the acknowledgment and delivery record separate from the internal valuation workpaper. The charity's accounting amount and later sale proceeds should not be presented as a conclusion about the donor's deductible amount. Route donor-specific valuation and substantiation questions to the donor's adviser while providing accurate information about what the charity received.