What is the best way to enter stock donations if you do not sell the stock?
We received several shares of different stock from a donor and our investment manager decided not to sell some of the stock. If I enter the information in public securities, I have to then "sell" the stock in CSuite. Should I only enter what was sold and then enter the other portion as "other payment?"
This is the first time this has happened so I want to make sure I am entering it in properly.
Answers
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Hi there,
I would recommend using the public security option. It provides the best transaction audit trail.
I would enter the original gift, then sell as needed. If it never sells, that is OK. In CSuite, you do not have ever sell a pub.sec. item. It will remain in the ToSell section of pub.sec. as a reminder that the stocks are still with the broker.
Another benefit of pub.sec. is that it will correctly record all accounting transactions as the securities are received and sold.
Hope this helps.
Mike Puccio
Mike Puccio | Apiscommunityconsulting@gmail.com | 360-298-8881
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@MikePuccio Do you have a recommendation on the best way to account for stock sold for a value less than received? Do you socialize those losses or do you account for it just at the fund level? The stock was a donation.
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@MeghanBaylor the loss belongs to the fund that recorded the initial gift. CSuite stock sale functionality will take care of making the correct accounting entries. During the sale process, the original sale amount is reversed and replaced with an adjusted amount +/- gain/loss. Hope this helps and happy to chat if you have questions. m
Mike Puccio | Apiscommunityconsulting@gmail.com | 360-298-8881
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